Q1: If it is required to install a new substation to meet a continuous load growth that currently require only 225 MVA transformer while within six years the load growth will require 325 MVA transformers. Utility planners have to choose between two options. Either to build a substation with two transformers now and spend $2,200,000, then add the third transformer after six years and pay another $850,000 (a total expenses of $3,050,000 ). Alternatively, they can decide to build the substation with three transformers now and spend a total of only $2,600,000. Consider the project lifetime 30 years and the discount rate is 0.06 [3 Marks]