A wastewater treatment plant adds $700,000 to the cost of a computer chip manufacturing facility.

a) What is the annualized capital cost (U) of this plant if its lifetime is 15 years, the interest rate is 4%, and the end-of-life scrap value is $40,000? (4 points)

b) If the facility manufactures 1 million chips per year, what is the added cost per chip due to capital expenditure for wastewater treatment? (3 points)