2. Future Value and Present Worth (DRAW the Cash Flow Diagram) a) The Singapore National Stadium is buying a new ticketing system. The price the vendor and Singapore has agreed to is $200,000. The government will also pay 8% interest compounded annually for the ability to not make any payment on the system until the 5 year warranty period is up. So, the new system will be installed in December 2022 but they do not have to pay the vendor until December 2027. What will they be required to pay the vendor in December 2027? b) Engineers at Delta Works, using asset management tools, have identified that a sluice unit will need to be replaced in 7 years at a cost of $50,000 in that year. How much should the plant put aside now to have the money to replace the sluice unit in 7 years? Assume a 11% interest rate compounded annually. c) A major improvement to the US Interstate System is going to be built in phases. Phase I is scheduled to be competed in 3 years and the cost at year 3 is $125,000. Phase II is scheduled to be complete in year 7 at a cost of $210,000 and the final Phase will be complete in year 15 at a cost of $300,000. Using a 6% compounded discount rate, what is the capitalization (sum of the equivalent present values) of the transportation improvement project? 2. Future Value and Present Worth (DRAW the Cash Flow Diagram) a) The Singapore National Stadium is buying a new ticketing system. The price the vendor and Singapore has agreed to is $200,000. The government will also pay 8% interest compounded annually for the ability to not make any payment on the system until the 5 year warranty period is up. So, the new system will be installed in December 2022 but they do not have to pay the vendor until December 2027. What will they be required to pay the vendor in December 2027? b) Engineers at Delta Works, using asset management tools, have identified that a sluice unit will need to be replaced in 7 years at a cost of $50,000 in that year. How much should the plant put aside now to have the money to replace the sluice unit in 7 years? Assume a 11% interest rate compounded annually. c) A major improvement to the US Interstate System is going to be built in phases. Phase I is scheduled to be competed in 3 years and the cost at year 3 is $125,000. Phase II is scheduled to be complete in year 7 at a cost of $210,000 and the final Phase will be complete in year 15 at a cost of $300,000. Using a 6% compounded discount rate, what is the capitalization (sum of the equivalent present values) of the transportation improvement project