Problem $5$

The table below shows two $(2)$ alternatives for a transportation project:

$\backslash$table$[[$Alternative$,\backslash$table$[[$Capital$],[$Cost$],[$$

Problem $4$

A new transit system has a capital cost of $$40,000,000,$ and an annual maintenance cost of $$700,000.$ The transit system earns a steady income from fares of $$1,200,000$ per year. Assume no interest over time.

a$)$ Determine the year and total cost at which there is a break$-$even.

$[4]$

b$)$ Sketch a fully labelled graph of Cost $($$$)$ vs Time $($years$)$ showing the break$-$even point. $[4]$

c$)$ What is the total profit made at $90$ years?

$[2]$