3. (15 pts) Capitalized Costs A very kind donor is attempting to determine if she can afford to create a nature reserve and if it is a good investment (relative to other requests she has been asked to consider). The cost for the land for the nature reserve is $20,000,000. Annual maintenance is virtually zero (assume no cost) but every 5 years after the purchase there is a cost of $2 million grounds rehabilitation cost. The annual benefits to the public for the reserve are estimated to be $4 million. Assume all costs and benefits go on forever (in perpetuity). The social discount rate is estimated to be 5%. a) 10 points: What are annual benefits and annual costs of the project? b) 5 points: Provide a brief statement of whether you would encourage her to invest