8. 10.19 The makers of Lifestraw, a filter designed to allow the user to drink water safely from a stream, have a financial decision to make. Implementing an automated assembly process will cost $5000 per year for the next 6 years. The interest rate is 15% per year and the inflation rate is 5% per year.

(a) What is the amount they can spend now in lieu of these future costs? Solve using factors and a spreadsheet.

(b) If only $12,000 is available now, what is the maximum equivalent amount that can be spent for each of the 6 years? How does this compare with the $5000 estimate?Page 323