Problem 2 Chemosys water engineering Inc. plan to construct water purification plant in Kalona Iowa, to supply portable water to 40,000 lowa homes. Chemosys will spend $0.651 billion in constructing the plant and $0.145 Million per year in operating it. If a salvage value of 21% of the initial cost is estimated at the end of the project (possibly for the equipment and other disposable items). Chemosys is intended to run the project for 12 years before they transfer the operation to the county government. A complete overhaul of the plant will be carried out at the end of year 4 and Year 7 at an extra cost of $54200 and S47850 respectively. Considering an interest rate of 7% per year: a) b) c) Determine the engineering economy symbols and their value for each option. Construct the cash flow diagram What is the Present worth of the project