At Northeastern Power Company (NEPCO), we must replace a cooling water pump at the power generating plant. Two alternatives are under consideration: Pump A has a purchase price of $50,000. It is expected to have a salvage value of $5,000 at the end of its 7-year life. Operation and maintenance expenses are estimated to be $1,200/year and are expected to remain constant for the first 2 years of operation after which the O&M expense will escalate at an annual rate of 3% compounded. The pump will require a $7,000 overhaul at the end of its 4th year of service. Pump B's price is being negotiated. It will have no salvage value at the end of its 7-year life. O&M expenses are estimated to be $1,500/year and are expected to remain constant for the first 2 years of operation after which the O&M expense will grow at a rate of $200 per year. Pump B is not expected to require a mid-life overhaul. Draw cash flow diagrams for these alternatives. If NEPCO's MARR is 9% p.a., what is the highest price we should be willing to pay for Pump B today (ignoring tax effects)