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: Solvent-Paint Powder-Pai Procesn $1,200,000 0.21 10 2,000,000 500, 000 Initial investment Unit paint cost Estinated life in years Annual units 0.16 10 2,000,000 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: 12 1,000 Monthly pit cleaning Bazardous waste disposal Superfund fee Worker training 183 18,690 3,000 0-17 1,500 110,000 ,000 25 0.25 45,000 0.2 4-6 Amortization of air-emission permit Air-emission fee Recordkeeping Wastewater treatnent 150,000 The firm estimates its after-tax cost of capital to be 12%. Either system is a 10-year property under MACRS (see text Exhibit124 The firm pays a total of 40% in income taxes. Unit Cost Units 17 Nonthly pit cleaning Hazardous waste disposal Superfund fee Worker training Insurance Amortization of air-emission pernit Air-emission fee Recordkeeping Wastewater treatsent 12 1,000 183 3,000 0.17 2 1,500 10,000 1,000 25 0.25 45,000 150,000 18,690 0.2 44-6 The firm estimates its after-tax cost of capital to be 12%. Either system is a 10-year property under MACRS (see text Exhibit 124 The firm pays a total of 40% in income taxes. Required: 1. What is the total cost, in present value terms, of the Solvent-Paint System? 2. What is the total cost, in present value terms, of the Powder-Paint System? 3. 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.) 1 Total cost (Solvent-Paint System) 2 Total cost (Powder-Paint Systom) 3 Maximum amount to be paid