See figure attached for the question.

I have concerns regarding the way the question is worded.

Does the company incur Revenue/O&M/Savingsat the end of the 1st year,(i.e. immediately after the building is constructed)or at the end of the 2nd year?

When I read the question I thought the Revenue/O&M/Savings would all begin to occurat the end of the 2nd year.

Which is correct and why?

Also, attached is my work for the NPV and RORCassuming the Revenue/O&M/Savings occur at the end of the 1st year.

Could someone please clarify? I want to make sure I am able to extract the information from the questions correctly!

$\displaystyle \text{For Reference: }$

$\displaystyle P = \text{Present Worth}$

$\displaystyle F = \text{Future Worth}$

$\displaystyle A = \text{Annuity}$

$\displaystyle \text{Example of using the mnemomic expressions is below, }$

$\displaystyle (\frac{A}{P}, i\%,N) \equiv \text{ A constant that when multiplied with the present worth, will provide the equivalent annuity over N peroids given a discount rate of i}\%$

$\displaystyle \text{Similiarly for the other mnemomic expressions.}$