uestion 10 (Source: Engineering Economy by Leiand Blank and arihory Targuin- Solution available) Glyphosate is the active ingredient in the herbicide Roundupo marketed by Monsanto Co. Monsanto's sales price was decreased from $16 to $12 per gallon to compete with the highly compeitive pricing, and it is expected that the international price will settle at approximately $10 per gallon. Assume when the price was set at $16 per gallon, there was a prediction that in 5 years the price would inflate to $19 per gallon. Pertorm the following analysis (a) Determine the annual rate of inflation over 5 years to increase the price from $16 to $19. (b) Using the same annual rate determined above as the rate at which the price continues to decline from the new $12 price, calculate the expected price in 5 years. Compare this result with $10 per gallon that Monsanto predicted would be the longer-term price (c) Provided Monsanto were somehow able to recover the same market share as it had previously, and the same inflation rate was applied to the reduced $12 per gallon price, determine the price 5 years in the future and compare it with the pre-dumping price of $16 per gallon. (d) Determine the market interest rate that must be used in economic equivalence computations, if inflation is considered and an 8% per year real return is expected by Monsanto