Neco Model Questions Vol1 2021 Geography Question 1

An electronics manufacturing firm is evaluating three possible sites for a new plant. The plant will produce 10,000 units per year, each unit requiring 2 kWh of electricity. The annual electricity consumption is therefore 20,000 kWh. Transport cost is ₦0.05 per unit per kilometre. The firm needs 5 ha of land. The data for each site are: - Site X: land cost ₦1,200,000 per ha; distance to raw‑material source 80 km; distance to main market 150 km; electricity cost ₦15 per kWh. - Site Y: land cost ₦1,000,000 per ha; distance to raw‑material source 120 km; distance to main market 100 km; electricity cost ₦13 per kWh. - Site Z: land cost ₦1,100,000 per ha; distance to raw‑material source 60 km; distance to main market 200 km; electricity cost ₦14 per kWh. Assuming all costs are incurred annually, calculate the total annual cost for each site and state which site the firm should choose to minimise cost.