Question 5 {2 points] The engineering department of a nickel mining company is considering two alternatives for improving material flow in its mineral processing plant. Both alternatives assume the same construction time and service life of 20 years, because that is the estimated remaining life of the mine. A minimal reconfiguration will cost $7.5M (million) with annual maintenance costs of $200,000. During construction, there is an extra cost of $900,000 for material movements and overtime congestion, but more efficient movement of materials will save $1.5M annually during the operation. (The cost savings actually start lower and increase over time, but we assume fixed annual cost savings for a simple analysis.) Reconfiguring a second part of the plant will cost an additional $3M with an added annual maintenance cost of $100,000. This construction is more disruptive, and the total cost for material movement and overtime congestion during construction is $2.1M. Once complete, the total cost savings for further efficient movement of materials is $2M annually. Which alternative is preferred if the discount rate is 5% or 8%? Question 3 (2 points] Suppose your credit card balance (before interest and fees) is $1,000, and the effective interest rate is 22% per annum. If you can pay offall the $1,000 you have charged to the credit card within one month, there is no interest. However, you have decided to pay $30 on the last day of each month, as indicated by the credit card company. The interest will be accrued in this case and reassessed after each billing cycle (one month). If no further purchase is charged to this card and you never miss a scheduled payment, when can you expect to pay off the outstanding balance? How much interest will you pay in total