Problem 2(60 points) Chevron currently operates an oil exploration project with Saudi Aramco Company. The project will run for the next 20 years with an initial investment of $0.75M and annual operating cost of $65000/yr for the next 7 years, and also $80,000/yr for the next 8 years. The annual operating cost for the last five year is estimated as $95000/yr with a gradient increment of $1000. A complete overhaul of the fracking equipment will be conducted at the end of year 5 and 14 at an extra cost of $65400 and 85200 respectively. The equipment used will be dispose of at an estimated salvage value of $350000. Considering an interest rate of 10% per year: a) Determine the engineering economy symbols and their value for each option. b) Construct the Cash flow diagram c) Calculate the Present Worth of the Cash flow Estimates Problem 2(60 points) Chevron currently operates an oil exploration project with Saudi Aramco Company. The project will run for the next 20 years with an initial investment of $0.75M and annual operating cost of $65000/yr for the next 7 years, and also $80,000/yr for the next 8 years. The annual operating cost for the last five year is estimated as $95000/yr with a gradient increment of $1000. A complete overhaul of the fracking equipment will be conducted at the end of year 5 and 14 at an extra cost of $65400 and 85200 respectively. The equipment used will be dispose of at an estimated salvage value of $350000. Considering an interest rate of 10% per year: a) Determine the engineering economy symbols and their value for each option. b) Construct the Cash flow diagram c) Calculate the Present Worth of the Cash flow Estimates