Use the following information to answer questions 12 to 15 The local municipality of Buffalo City has decided to replace its aging infrastructure with state of the art infrastructure. The cost of acquiring new capital is 8% per annum. The municipality generates revenue from the provision of services such as water, electricity, etc. Buffalo City's Mayor provided the following stream of cash flows at a public meeting water (R Cash flows-and . Electricity [R Year I expenditures -20 000 or instillation costs -10 000 000 Purchase price 1-5000000 2000 000 3500 000 T tc 5 400 000 5400 000 Cash now 6 200 000 8200000-7500 hloe 7100.100- 8 200000 Cash now g er le 4200 C00. 9 000000 Cashflow Question 12 le is w m Calculate the NPV of Electricity and choose the correct option. R3 817 839 ua 2. R9 902 086 wsa R14 902 086 R19 902 086 qu of ca Question 13 Ci of isi Caluate the NPV of Water and choose thn correct option. n lo st ro re R3 817 839 R5 817 839 Be th in R9 902 086 fo ty e fro fo R23 817 839 be he Question 14 ed ed Calculate the IRR of Electricity and choose the correct opton th rt at p 2. 17% 31% gM 117%