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The initial cost of a new monument in Washington D.C. will be $2,500,000 and infinite annual maintenance cost starting in year 2 will be $200,000.

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The initial cost of a new monument in Washington D.C. will be $2,500,000 and infinite annual maintenance cost starting in year 2 will be $200,000. There will be an additional cost of $150,000 recurring every four years. At an interest rate of 6% per year, how much money must they raise now in order to construct and maintain the monument forever? a. Draw the cash flow diagram showing ALL the arrows, times, time lines, etc. (10) b. Solve the problem. Show all work - the equation with the factors, factor values, etc. (This requires a completely manual solution. If you use some other method such as Excel, no points will be given). (20)

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