pictures below show the first part of the problem needed for solving the second part

3. (30 points) Parts 4 U has come up with an alternative plan to potentially offset some of the initial construction costs of the new facility. They would proceed with construction immediately and leave the current facility operational for a 5-year period. They expect additional costs will be incurred for hiring additional employees, travel, and other costs. They anticipate an additional $100,000 in expenses annually to keep the old facility operational between the time the new facility opens and the end of the 5 year period, at which point they believe it can be sold for the value of the land, $350,000. a. Draw the combined 10-year cash flow for the company under these circumstances b. Determine 10-year present worth for the combined plan if interest is 5% 2. (20 points) Parts 4 U has found a vacant property that would be a favorable site for the new facility mentioned in Question 1. The site would require construction of the new facility that would take 2 full years to construct at an estimated cost of $3,500,000. By the end of the construction, the company is expected to spend $180,000 in the first year on operating costs to match the current facility. They anticipate a $20,000 increase in costs each year after as they begin to expand production and buy additional machinery. However, the company expects to generate $1,200,000 in the first year of operation, and have steady 3% increase each year after. a. Draw the cash Flow for this new facility b. Determine the 10-year Present worth of the new facility if interest is 5% 2.a) cost-$3,500,000 n: 2 +$20,000 each vear income assume 10 year cash operating 8180,000 year! $1.200.000 3% increase per flow ? ye - 1132 Luk 1071k fotok azok torek 105 10 inconett cost (8) o. T 6) i=5% n = 10 PW of new facility - Net income F - cash flows for y(3-10) P-FLO P - IP20,000 (-8638') = 881,076 Pu: 1036,000 (-8221- 852;317 Ps = 1,053,080(. 7835) = 825,088 P = 1,071,272 0.7467) : 799,383 Pa = 1,090,611.7107 ) = 775,097 Pa = 1,111,129 (.6768) = 752,012 Pg 1,132,8631.6446)= 730,243 Pel 155,849.6.139) = 709,575 Protal =186,324,791