Question 2: The Oman National Grid Company ventures to a new project in the southern part of the Sultanate which is a 2 kilometer, 132 kilovolts transmission lines. The company has to choose between an Overhead transmission sy Underground transmission system. Table Q2 shows the initial investment for each type, the expected revenue incurred by underground transmission system over the overhead ransmission system. The company has estimated a salvage value for each type of transmission to be 5% of th investment. As a company policy the minimum attractive rate of return MARR is 8% per year. Determine which two alternatives is acceptable to the company using the following methods; (i) Simple payback period; (ii) Benefit cost ratio, (ii) Net present value NPV; (iii) Internal rate of return IRR. Table Q2 Overhead Transmission System Underground System Items 8,707 11,256 Initial Investment (million OMR) Annual revenue + cost savings (million OMR) 1012 1218 Annual Operating & Maintenance O&M Cost/Depreciation/ taxes (million OMR) Life expectancy, n (years)