QUESTION $2$

The contractor building a large hotel complex considers installing a $125$kW three fase generator to provide power during the construction of the entire project. The generator will cost R $98000($VAT included$)$ and is expected to have a life of $4$ years with R$25000$ resale value at the end of its useful life. The fixed operating costs and maintenance of the equipment will amount to R$15345$ per year independent of the extent of use plus a fuel and variable operating cost of R$291($VAT Excluded$)$ per day of use. The manager of an adjacent garage offers to provide the necessary power from their $250$kW $($three Phase$)$ generator at a fixed, all$-$inclusive cost of R$1287,75($VAT included$)$ per day of use. If the contractor's cost of capital equals $12\%$:

$1.$ Calculate by break$-$even analysis the number of days per year on which power would have to be provided to make the external source of power $(125$KW Generator$)$ the cheaper alternative.

$2.$ What would the contractor's cost of capital have to be for the two power sources to be of equal cost assuming a power requirement for $50$ days$$of$$the$$year$?$