Intel is analyzing the costs for upgrading its semiconductor manufacturing facilities. Fixed capital expenditure (CapEx) costs are $1 billion, and variable operational costs are estimated at $100 million per year. Intel plans to operate the facilities for 10 years. Additionally, maintenance and upgrade costs are projected to be $50 million annually.

Requirements:

• Calculate the total CapEx for upgrading the semiconductor facilities.
• Determine the annual variable operational costs.
• Analyze the cumulative operational costs over the 10-year period.
• Discuss the importance of regular maintenance and upgrades in maintaining operational efficiency.
• Evaluate the total cost of ownership for the semiconductor facilities.
• Recommend strategies for optimizing CapEx and operational expenses.