Question $3(25$marks$)$

a$)$ Define Life cycle cost, you may use a diagram to illustrate.

$(2$ marks$)$

b$)$ State three objectives of life cycle costing.

$(3$ marks$)$

c$)$ State three costing that are associated with life cycle in the design phase.

$(3$ marks$)$

d$)$ Draw and label a graph showing the influence of life cycle cost against life cycle phase.

$(7$ marks$)$

e$)$ Explain the meaning of the following financial terms:

i$.$ Present rate of return

ii$.$ Return on investment

iii. Internal rate of return

iv$.$ Net present value

v$.$ Cost benefit ratio

Use example where necessary to assist.

$(10$ marks$)$