E.5. The construction of south-end zone seating in a football stadium is scheduled to occur 12 months from now at a cost of $10,000,000. In addition to the construction cost, heavy maintenance is expected to occur every 24 months thereafter for a long time to come (n.) and cost $100,000 for every occurrence. Assume i = 0.75 percent per month (first heavy maintenance at EOM 36, then EOM 60, 84, 108, etc.). (a) Draw a representative section of the cash flow diagram. PART ONE Basic Principles 100 (b) Find the capitalized cost (present worth) of this project. (Ans. $9,607,800) (c) Assume income occurs monthly for 3 months out of each 12. Find the monthly income required to pay for all costs mentioned above if the first income occurs at EOM 15, 16, and 17 and every 12 months thereafter (e.g., EOM 27, 28, 29, then 39, 40, 41, etc.). (Ans. $309,520)