11.A small manufacturing company expects to have to replace its aging production line in five years with new equipment. The current equipment has operating costs which are expected to be $5,000 this year, $6,000 next year, with costs increasing by $1,000 per year through year five. The equipment will have a salvage value of $30,000 at the end of year five. The new equipment is expected to cost $150,000 and the company uses an interest rate of 16% per year compounded quarterly on its investments. Answer the following questions a. What is the operating cost in year four? b. What is the present worth of only the purchase price of the new equipment? c. If the $30,000 received from the salvage value of the old equipment will be used to help purchase the new equipment, how much money must the company set aside each quarter in order to have the total amount needed for the new equipment in year five? Did you consider the operating costs on the previous calculation? Why