Show all work. Label all graphs fully and accurately. Answers must fit in the space provided. Be specific, brief and clear. 5. (8 Points) A project has been proposed to build a water filtration system to deal with the issues of urban and agricultural run-off entering a reservoir. The initial capital investment, in year 0, is $50 million dollars with annual maintenance and upkeep costs of $30 million. The projected benefits may be as high as $50 million annually. The project has a three year lifespan. One of the policymakers has suggested a discount rate of 5%. What is the present value of net benefits using this discount rate? Based on this discount rate, should the project be undertaken? a. b. A second policymaker argues that it is possible that the projected benefits are only $40 million, while the upkeep costs and discount rate remain the same, with a probability of 0.30. What is the total expected value of the present value of net benefits? Should the project be undertaken