The City is building a new basketball court in its newly built recreation centre. Two alternative designs are being investigated, both of which are expected to have infinite service life. The first design has an initial cost of $87,000. Every 8 years, the court surface would have to be refinished and painted at a cost of $7,000. To ensure that the finish and paint lasts for 8 years, a company is hired to do regular touch-ups at a cost of $1,200 per year