Question 1 Two alternative designs have been put forward for the construction of a new water treatment plant in Logan city. Based upon the information provided in the table below determine which option should be selected using the benefit cost ratio (BCR). The economic life of the power plant is set at 50 years and the annual interest rate set at 10% compounded monthly. Construction materials 10,000,000 '- 18,000,000 Design II Construction cost $8,000,000 $4,000,000 ' Maintenance fee per year $300,000 $100,000 l Annual production (ML) 500,000 800,000 Sale Price per ML $10 $10 Question 2 End 0 li e value '1,000,000 '- 1,750,000 Calculate payback period for construction of a small stadium in Melbourne, with land purchase $2,100,000, construction costs $7,250,000, annual benefit $2,000,000, annual maintenance cost $700,000 and interest rate 10%