annual equivalent cost

You are contemplating driving an underground airway at a cost of $1,750,000. The airway will be used to deliver 120 m³/s of fresh air to mine workings at a pressure drop of 780 Pa and the fan efficiency is expected to be 78%. Assuming a life of 7 years, an annual interest rate of 8.5% and a cost of electrical power of $0.12 per kWh, calculate:

1. The annual equivalent cost of owning the airway.
2. The annual equivalent cost of ventilating the airway 24 hours per day, 365 days per year.