A 500-MW power plant is to be built. An older 400-MW plant was constructed at the cost of $400 million. a) If the scaling factor (m) is 0.6, what is the estimate of the cost of the new plant? b) Would an index method be relevant in answering the previous problem? Explain c) Revise the estimate in Part (a), taking into consideration the fact that the location is now different. The original location was in Iowa, with a cost factor of 0.8 of the national average, while the new plant is to be constructed near Denver with a cost factor of 1.15 of the national average. d) Now revise the estimate in Part (c), taking into consideration the fact that 400-MW plant was constructed 10 years ago. If the relevant inflation rate for power plants has been 4.2% per year, what is the new estimate? (Consider location factors, too.) e) The plant described above is to be connected to the national grid through transmission lines. In total 100miles of transmission lines are to be laid at the cost of $42,500 per mile, including material and labor costs, given the terrain. What is the cost of the transmission component of this estimate? f) The per unit transmission cost stated in the previous problem assumed that transmission towers would be spread a standard amount apart. However, due to the terrain, an additional tower is needed. Assume that a transmission tower costs $50,000 to construct. Assume further that the per-unit cost for the transmission line is now $25,000 per mile. Finally, assume that two transmission substations are required at the cost of $350,000 each. Using the factor method, estimate the investment cost for the entire power plant investment. (Add the power plant estimates from part (d) to the analysis you perform here.)