Show all your calculations along with well labeled cash flow diagram You are assigned as a Drilling Engineer for a newly planned 10-year field development program. Your first assignment is to plan processing and disposal of the drilling fluids/cuttings prior to injecting them into a nearby disposal well. Your estimate, based on the research you have conducted within your company shows that the waste liquid/cuttings processing and disposal will cost $3,000,000 at the end of first year. You can improve the process and will be able to reduce the costs by $300,000 for each year, after year 1. Alternate option is to contract out the processing and disposal of drilling fluids and cuttings to an external contractor, who has offered a contract to process the waste liquids/cuttings for the ten years for a fixed price of $2,300,000 per year, payable at the end of each year, starting from end of the year 1, with an additional one-time cost of $4,500,000 at the end of year 5. Either way, there is no need for processing and disposing of drilling fluids and cuttings after ten years. If you, as a drilling engineer, in charge of the operations, consider 8% a suitable interest rate, should you accept the contractor offer or handle it within your company