QUESTION 3 As an experience manager, you are task to select which location is best suit for a new power plant location. Your top management has offers two options; A and B and the details of cost occurred at both locations are tabulated in Table 1. Table 1 Location A RM 50,000/month RM 20,000 Location B RM 25,000/month RM 35,000 5% from the system cost 10% from the system cost Parameter Rental Transmission and distribution (T&D) system cost Interest and depreciation on (T&D) system Cost of labour Cost of material (coal) Cost of transportation Plant maintenance cost RM 300,000 RM 0.40/kg RM 1.50/kg RM 10,000/month RM 200,000 RM 0.30/kg RM 2.50/kg RM 15,000/month i) Identify the fixed and variable cost and compare the total and average cost of generating electricity at these two power plants when the total production unit of clectricity required is 1000000 kWh per month. It was formulated that a total of 250,000 kg of coal is required to generate this much. ii) Based on the most economical selection in (i), calculate the total profit earn for one year if the company's selling price of each production unit of electricity is RM1/kWh [10 marks iii) If the owner of the company has earlier borrow RM 100,000,000 for the new power plant location start up, calculate the monthly installment if the payment schedule duration is 20 years. Include an interest of 2% per year for the first 5 years only (assume the interest is based on the total loan amount]. From your observation, can the 20 years profit able to compliment the total loan. [10 marks