PROBLEM 15. Consider a project that may be constructed to full capacity now or may be constructed in two stages. All facilities will last for 40 years regardless of when they are installed; after 40 years, they will have zero salvage value. An 8% interest rate is assumed. Assume the following: (1) The annual cost of operation and maintenance is the same for both two-stage construction and full-capacity construction. Plot Present Worth of both projects versus Years of age and mark the breakeven (year) point on your graph. Record the break-even year in the answer sheet. Construction Type Costs Two-stage construction Construct first stage now $100,000 Construct second stage n years from now $120,000 Full-capacity construction Construct full capacity now 140,000