Question 3 (2 pts): An oil company is planning to install a new 80 mm pipeline to connect storage tanks to a processing plant 1500 m away. The connection will be needed for the foreseeable future. An annual interest rate of 8% is assumed, and annual maintenance and pumping costs are considered to be paid in their entireties at the end of the years in which their costs are incurred (initial cost=$1500, service life=12 years, salvage value=$200, annual maintenance=$400, pump cost/hour=$2.50, pump operation=600 hour/year). Determine the capitalized cost of running and maintaining the 80 mm pipeline