After these previous calculations, the project still requires a big initial investment, and other options are being considered. We were considering adapting our production line, in order to produce some parts for electric automobiles, this way, and after analyzing the possible market opportunities, we could expect to obtain net revenues of $35,000 per quarter for at least the next 10 years.

a) What is the maximum that we should invest on this project if we consider a cost of capital of 4%?

b) If we ask for a loan of 1,000,000 at an annual interest rate of 2% compounded semiannually, to be paid in 10 years, how much would you have to pay every semester to cover the loan?