You are on a team developing a new satellite. It has four main components: 1) a power system, 2) altitude control, 3) an antenna, and 4) a data collection sensor. The manufacturing costs of the first satellite are expected to cost $3.6 million dollars, and each subsequent satellite is expected to decrease in manufacturing costs by 2% for the first 12 units. You assume manufacturing costs are applied at the completion of the satellite (aka end of the month). Your team will manufacture 1 unit a month for the first year. At the end of 6 months and at the end of the year, your team will launch all of the completed satellites into orbit (6 units per launch). This will cost $1.2 million per launch. The satellites are expected to be in orbit for 10 years and have a salvage value of $12,000 each at the end of their 10-year orbit. 

a. Draw the cash flow diagram. (You may abbreviate your diagram between the end of year 1 and year 10). 

b. Use an effective monthly interest rate of 1.8% to evaluate the total present value cost to make, launch, and sell the satellites. c. Congratulations you applied for a grant from the Florida Space Consortium, and you have received $3.5 million dollars. You will need to apply for a business loan for the rest based on the total present value cost of the project found in part b, which you intend to pay off monthly during the 10-year orbit. You will take out the loan with an interest rate of 8% compounded monthly at the beginning of the project. 

What monthly loan payment you will need to make during the 10-year orbit?