Myers Manufacturing Inc. wants to build a booth for painting the boxes it makes for small transformers used to power neon signs. The

company can choose either a solvent$-$based or a powder$-$based paint process. The following table summarizes the costs and

investment required by each approach:

The firm will incur additional environmental costs with the solvent paint process but not with the powder paint process. The firm

estimates annual environmental costs for the solvent paint process as follows:

The firm estimates its after$-$tax cost of capital to be $12\%.$ Either system is a $10-$year property under MACRS $($see text Exhibit $12\mathrm{.}4).$ The

firm pays a total of $40\%$ in income taxes.

Required:

What is the total cost, in present value terms, of the Solvent$-$Paint System?

What is the total cost, in present value terms, of the Powder$-$Paint System?

What is the most the firm should be willing to pay for the powder$-$based process?

$($For all requirements, Round your answer to the nearest dollar amount.$)$