These are the task that students need to do: a) Choose the best scenario from an economic standpoint. The more economical and logical scenario shall be chosen for the project. You may use any method that you learn in the class such as equivalent uniform annual worth, equivalent present worth, or equivalent future worth must determine which of the two is more economical. Support your answer with a cash flow diagram for 20- a years lifetime. b) The building has a seven-year depreciable life and estimates salvage value is zero at the end of seven years. Determine the annual depreciation amounts by using the 200% DB method. Tabulate the annual depreciation amounts and the book value of this building at the end of each year. c) Both scenarios are planning to install the Solar PV with a total cost is RM60,000 which will be paid in 1st year, and maintenance fees of RM1000 between the years 3 and 20. This planning could reduce the electricity by up to 10% annually. Discuss the benefits and drawbacks of this initiative. A 50,000-square-meter student residential building is to be constructed by UMPP Holding. The owner has a 25-acre parcel for this project. Two project scenarios have been given. Both scenarios have several expenses including site work, construction, civil engineering, and Architecture and Engineering fees, landscape and building maintenance, pavement rehabilitation, and utilities. There is also, rental and loan income. These values can be found under the income and expenses page. Scenario 1, the entire building is to be designed and built in one phase. Half of the building is to be used immediately after construction and the other half is to be leased five years beginning one year after construction. Scenario 1 includes expenses such as building retrofit, repair after the students move out and administration office construction for the leased side. Expenses: The Civil Engineer gets a RM85,000 fee. He gets 80\% payment on year 1, and 20\% payment on year 2 . The Site work costs RM850,000, that will be paid on year 2 . The Architectural Engineer gets a RM2,880,000 fee for the design. He gets 80% payment on year 2, and 20% payment on year 3 . The additional Office construction costs RM150,000, will to be paid on year 3 . The building construction costs RM48,000,000 will be paid on year 3 . The retrofit for the building costs RM500,000 will be paid on year 9 . The pavement rehabilitation costs RM150,000 will be paid on years 9,14, and 19 . The advertisement for leasing costs RM1,200 annually on years 2, 3, and 4 . The landscape maintenance costs RM3500 annually between the years 3 and 20 . The amenities maintenance costs a RM1,500 annually between the years 3 and 20 . The insurance costs RM10,000 annually between the years 3 and 20 . The general building maintenance costs RM1,200,000 annually between the years 3 and 20 . The electricity costs RM480,000 annually between the years 3 and 20 . The Indah Water costs RM3,000 annually every year between the years 3 and 20 . The water costs RM1,000 annually between the years 3 and 20 . The fire suppression costs $500 annually between the years 3 and 20 . The loan payment is RM2,277,223 annually between the years 1 and 20. Income: The loan Income is a total of RM35,500,000 on year 1 . The lease income is RM3,000,000 annually between the years 4 and 9 . The rental income on the other side during the lease is RM2,340,000 annually between the years 4 and 9 . The rental income is RM4,680,000 annually between the years 10 and 20 . Scenario 2, all 25-acre acres of the residential building are designed at once, but half is built immediately. The other half is to be built five years after the completion of the first half. Because of these two phases, all expenses must be split between the end of Phase 1 and the beginning of Phase 2. Unlike Scenario 1, Scenario 2 includes an Architecture and Engineering five-year building code evaluation which is performed while the second phase is underway. Expenses: - The Civil Engineer gets a RM91,000 fee. He gets 80% payment on year 1, 9.4% payment on year 2 , and 10.6% payment on year 10 . - The Architectural Engineer gets a RM3,360,000 fee for the design. He gets 80% payment on year 2, 9.3% payment on year 3 , and 10.7% payment on year 11 . - The Site work for phase one costs RM425,000, will be paid on year 2 . - The Site work for phase two costs RM482,000, will be paid on year 10 . - The building construction for phase one costs RM26,000,000 will be paid on year 3 . - The building construction for phase two costs RM30,000,000 to be paid on year 11 . - The Architectural Engineer 5-year building code evaluation costs RM10,000 will be paid on year 10 . - The pavement rehabilitation costs RM150,000 will be paid on years 9,14 , and 19 . - The advertisement for leasing costs RM1,200 will be paid on years 2, 3, and 4 . - The landscape maintenance costs a RM3,500 annually between the years 3 and 20 . - The amenities maintenance costs a RM1500 annually between the years 3 and 20 . - The insurance for construction one costs RM5000 annually between the years 3 and 9 . - The insurance for construction two costs RM100,00 annually between the years 10 and 20 . - The general building maintenance costs RM600,000 annually between the years 3 and 9 , and RM1,200,000 between the years 10 and 20 . - The electricity costs RM240,000 annually between the years 3 and 9 , and RM480,000 between the years 10 and 20 . - The Indah Water costs RM1500 annually between the years 3 and 9, and RM3000 between 10 and 20 . - The water costs RM500 annually between the years 3 and 9, and RM1000 between 10 and 20 . - The fire suppression costs RM250 annually between the years 3 and 9 , and RM500 between the years 10 and 20. - The loan payment is RM2,285,175 annually between the years 0 and 10 , and RM1,485,363 between the years 10 and 20 . Income: - The loan income for the first phase of the project is RM20,000,000 on year 1. - The loan income for the second phase of the project is RM13,000,000 on year 10 . - The rental income for the first part is RM2,340,000 annually between the years 4 and 20 . - The rental income for the second part is RM2,340,000 annually between the years 12 and 20