32. 2.108 Union Pacific is considering the elimination of a railroad grade crossing by constructing a dual-track overpass. The railroad subcontracts for maintenance of its crossing gates at $11,500 per year, starting next year (year 1). However, beginning 4 years from now the costs are expected to increase by 10% per year into the foreseeable future (that is, $12,650 in year 4, $13,915 in year 5, etc.). If the railroad uses a 10-year study period and an interest rate of 15% per year, how much could the railroad afford to spend now on the overpass in lieu of the maintenance contracts? Solve using

(a) factors, and

(b) a spreadsheet.