The School of Engineering has decided to purchase a CNC mill for the machine shop. The initial cost for the machine is $67,000 with a 12-year service life and a salvage value of $4,000. Annual maintenance costs of $225 are expected as well as $150 each year for new tooling. Including labor, operation of the machine will cost $17.50 per hour. It is estimated that the CNC mill will be used 400 hours per year. Assume an annual interest rate of 10%. a. If the estimated benefit to the students and faculty from using the CNC mill is worth $17,500 per year, what is the benefit to cost ratio for the equipment? b. In addition to the benefit given in part 5a, approximately 175 hours per year will be spent on research grants that are charged at a rate of $65 per hour. What is the payback period for the equipment including the research grants