Question 3 (20 marks)

Conduct a benefit-cost analysis of the project using your answer to 2 above as a measure of the benefits that the project provides and which considers the following costs (all in millions of US$); and assumes that the project has an operating life of 30 years:

Year 1 2 3 4 U 6 7 8 9 10 Capital cost 3.2 310 375 450 185 2.32.3 2.3 2.3 2.3