Kate, a real estate developer, is planning construction of a major office high rise in downtown Austin. Her architectural engineering firm suggests she install improved curtain wall with high efficiency windows and seals. Doing so will cost her an additional $3/sf of curtain wall and she expects to have 200,000 sf of exterior wall. If she does so, she will be able to install a smaller mechanical system that will be $400,000 less than the original planed system. The energy savings are difficult to model, but she expects to save about $50,000/year in today's costs. Assume the study period is 20 years and there is no salvage value to the mechanical system. Part a) Draw the cash flow diagram for this investment. Be sure to label each item as current or constant dollars. Part b) Solve for the expected LCC for this alternative. Assume the real rate is 5% and nominal rate is 8%. Kate, a real estate developer, is planning construction of a major office high rise in downtown Austin. Her architectural engineering firm suggests she install improved curtain wall with high efficiency windows and seals. Doing so will cost her an additional $3/sf of curtain wall and she expects to have 200,000 sf of exterior wall. If she does so, she will be able to install a smaller mechanical system that will be $400,000 less than the original planed system. The energy savings are difficult to model, but she expects to save about $50,000/year in today's costs. Assume the study period is 20 years and there is no salvage value to the mechanical system. Part a) Draw the cash flow diagram for this investment. Be sure to label each item as current or constant dollars. Part b) Solve for the expected LCC for this alternative. Assume the real rate is 5% and nominal rate is 8%