1. Alternative

The expected life is 30 years,

Construction cost 129 M $ 

Land development cost 31 M $ 

Salvage value after 30 years 34 M $

maintenance costs 7 M $ at the end of the 7th year, 11 M $ at the end of the 13th year, 5 M $ every year since the end of the 17th year.

fuel expenses 5 M $ per year 

Annual operating costs 12 M $ 

annual income 47 M $ 

2. Alternative

The expected life is 40 years

Construction cost 160 M $ 

Land development cost 36 M $ 

Salvage value after 30 years 62 M $

maintenance costs 3.4 M $ per year

fuel expenses 6 M $ per year 

Annual operating costs 13 M $ 

annual income 53 M $ 

(BOTH ALTERNATIVES annual income and expenses will start from the end of the 2nd year is guaranteed.)

(Interest rate %10) (tax rate 35%) (straight depreciation) please write the values like (A/P %15, 10)x 135000000

a) Do the Marginal Rate of Return (Internal Yield) Analysis