A bioreactor and digitally controlled ultrafiltration units for the fermentation of biofuel precursor and the purification of the product stream respectively are expected to be paid in installment for the next 8 years. The first installment was made now at of cost $270,000, the next installment were made in three, five and eight years from now at a cost of $250,000,$180,000 and $200,000 respectively. If the biofuel company wants to set aside, enough money now to cover these costs at a rate of 16% per year compounded quarterly (every three months)? a) Draw the cash flow diagram b) What is the effective rate based on yearly and quarterly c) Determine how much must be invested now to cover the cost at the effective interest rate d) If they want to spread the payments equally for the eight years how much will the equipment cost the company per year