Table Q2 gives the costs for two infrastructure alternatives. The study period is 50 years. The MARR is 10% p.a. (a) Express the annual maintenance and user costs of each alternative as a uniform annual series over the study period. (b) Compare both alternatives using the B/C ratio method. Determine which is the better alternative. (c) When the balance of the incremental investment of capital in alternative B become zero? Round off to the nearest appropriate whole year.

Question 2 (25 marks) Table Q2 gives the costs for two infrastructure alternatives. The study period is 50 years. The MARR is 10% p.a. Table Q2 Alternative Capital cost (000) Annual maintenance costs Annual user costs (5000) (5000) $1500 S50 in the first year of the study Uniform $40 p.a. for period, growing at 6% p.a. for the the whole period rest of the period S2500 Uniform S25 for the whole period Uniform $15 p.a. for the whole period A B (a) Express the annual maintenance and user costs of each alternative as a uniform annual series over the study period. (8 marks) (b) Compare both alternatives using the B/C ratio method. Determine which is the better alternative. (10 marks) (c) When will the balance of the incremental investment of capital in alternative B become zero? Round off to the nearest appropriate whole year. (7 marks)