NAME: Section II. Problem Solving. SHOW YOUR WORK FOR CREDIT (60 points total) 2.1 [20 points]. You were asked to select the pipe diameter of a pipeline for a new pumping station that operates 2000 hours per year (I shift). Use present worth analysis considering a 10% interest rate and 5 years as the period of analysis to determine the best pipe size. Pipe Size in inches 2 3 4 6 Initial Cost $22,000 $23,000 $25,000 $35,000 Hourly pumping cost (S/hr) $1.30 $0.70 $0.40 $0.25 Answer the following questions showing your work. Not credit is given for not showing your work. The present value of total capital and operating costs, is the sum of the cost cashflows brought to present time. In this example there are no benefits or savings, thus you ignore sign. a) Draw a generic cash flow diagram for estimating present value of total capital and operating costs (hint: there are only costs here) [4 points]. Use proper labeling. b) Calculate present value of total capital and operating costs of the 2 in pipe? [3 points] c) Calculate present value of total capital and operating costs of the 3 in pipe? [3 points]