Problem 2 (20 Points) a) Your company will build a new facility. The cost will be $25,000,000. The facility will operate for 15 years, at an annual cost of $3,000,000. Operating costs will increase by $100,000 annually, starting with year two. Using an interest rate MARR = 8%, calculate the PWC for this facility. b) Your company is going to build the new facility (from Part A) 25 years in the future. Each year for the next 25 years, your company will invest money to cover the costs of this facility. Assume the investment account pays 10% annual interest, with annual compounding. At the end of the 25th year, the future value of their investment must be enough to cover the PWC for the facility. Calculate how much your company must invest each year.

Problem 2 (20 Points) a) Your company will build a new facility. The cost will be $25,000,000. The facility will operate for 15 years, at an annual cost of $3,000,000. Operating costs will increase by $100,000 annually, starting with year two. Using an interest rate MARR=8%, calculate the PWC for this facility. b) Your company is going to build the new facility (from Part A) 25 years in the future. Each year for the next 25 years, your company will invest money to cover the costs of this facility. Assume the investment account pays 10% annual interest, with annual compounding. At the end of the 25th year, the future value of their investment must be enough to cover the PWC for the facility. Calculate how much your company must invest each year