Please, show the details step!

1. NPV Analysis, 4%/yr Increase for Lab Maintenance, Force NPV=0 reqd using student fee to offset cash flow costs. 11.13 The Mechanical Engineering and Engineering Mechanics department of Michigan Technological University set up a brand new energy laboratory at an initial cost of 300000 . Annual operating cost: $2000; useful life: 10 years; end-of-useful-life salvage value: $50000. Every semester 130 students are required to take the lab with an associated fee. The academic year has two semesters and the number of students in each semester is assumed to be the same. A fund is to be set up to replace the laboratory at the end of 10 years of its useful life. To provide the capital for the replacement, a deposit will be made at the end of each year of the collected fees less operating costs to that fund. Market interest rate is 6%. The cost of maintenance is to be escalated at 4% annually. The capital required for the replacement of the equipment is estimated to be $500000 in year 10. Calculate the lab fee required. Assume a fixed fee amount for the next 10 years. 1. NPV Analysis, 4%/yr Increase for Lab Maintenance, Force NPV=0 reqd using student fee to offset cash flow costs. 11.13 The Mechanical Engineering and Engineering Mechanics department of Michigan Technological University set up a brand new energy laboratory at an initial cost of 300000 . Annual operating cost: $2000; useful life: 10 years; end-of-useful-life salvage value: $50000. Every semester 130 students are required to take the lab with an associated fee. The academic year has two semesters and the number of students in each semester is assumed to be the same. A fund is to be set up to replace the laboratory at the end of 10 years of its useful life. To provide the capital for the replacement, a deposit will be made at the end of each year of the collected fees less operating costs to that fund. Market interest rate is 6%. The cost of maintenance is to be escalated at 4% annually. The capital required for the replacement of the equipment is estimated to be $500000 in year 10. Calculate the lab fee required. Assume a fixed fee amount for the next 10 years