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Please show how the formulae are used. The main target of Langat 2 project is to develop the water supply distribution for Selangor area and

image text in transcribedPlease show how the formulae are used.
The main target of Langat 2 project is to develop the water supply distribution for Selangor area and also for flood control of nearby areas. The Malaysian government receives two proposals with the same characteristics but different initial costs and the same design life of 50 years with an interest rate of 7%. System P is introduced (Table Q4) by a local company. The calculated benefit-cost ratio is 1.31. The second proposal, namely System R, is submitted by an international company with an initial cost of RM580,000.00. Explain which system would result in more benefit. Useful formulae: P = S_n(1 + t)^-n S_n = A[(1 + i)^n - 1/i] A = P [i(1 + i)^n/(1 + i)^n - 1] The main target of Langat 2 project is to develop the water supply distribution for Selangor area and also for flood control of nearby areas. The Malaysian government receives two proposals with the same characteristics but different initial costs and the same design life of 50 years with an interest rate of 7%. System P is introduced (Table Q4) by a local company. The calculated benefit-cost ratio is 1.31. The second proposal, namely System R, is submitted by an international company with an initial cost of RM580,000.00. Explain which system would result in more benefit. Useful formulae: P = S_n(1 + t)^-n S_n = A[(1 + i)^n - 1/i] A = P [i(1 + i)^n/(1 + i)^n - 1]

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