You own an oil pipeline that will generate a $$2\mathrm{.}8$ million cash return over the coming year. The pipeline's operating costs are negligible,

and it is expected to last for a very long time. Unfortunately, the volume of oil shipped is declining, and cash flows are expected to

decline by $5\mathrm{.}5\%$ per year. The discount rate is $12\%.$

a$.$ What is the PV of the pipeline's cash flows if its cash flows are assumed to last forever? $($Enter your answer in dollars, not millions

of dollars. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.$)$

Present value

b$.$ What is the PV of the cash flows if the pipeline is scrapped after $15$ years? $($Enter your answer in dollars, not millions of dollars. Do

not round intermediate calculations. Round your answer to the nearest whole dollar amount.$)$