Two public projects are being considered. The first project has a construction cost of SR 1,000,000. The operating cost is SR 40,000 annually and a maintenance is required every 5 years of the amount SR 45,000. The second project has a one-time initial cost of SR 850,000 with an annual operating cost of SR 30,000 and required a maintenance cost of SR 40,000 every 3 years. There is an additional cost of SR100,000 in the 10th year only for the second project. Assume MARR is 18%. Indicate which of the following is correct using capitalized cost analysis:

1. The Capitalized Cost (CC) for the first project is:. (unit: SR)

a) 1,257,167b) 2,732,850c) 2,238,532d) 1,742,812

2. The CC for the second project is:

(unit: SR) a) 1,216,835b) 1,097,977c) 1,900,270d) 1,409,308