Show all work. Label all graphs fully and accurately. Answers must fit in the space...

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Show all work. Label all graphs fully and accurately. Answers must fit in the space provided. Be specific, brief and clear. 3. (12 Points) A project has been proposed to build a water filtration system to deal with the issues of urban and agricultural run-off entering a reservoir. The initial capital investment, in year 0 , is $50 million dollars with annual maintenance and upkeep costs of $20 million. The projected benefits may be as high as $50 million annually. The project has a three year lifespan. a. One of the policymakers has suggested a discount rate of 5%. What is the present value of net benefits using this discount rate? Based on this discount rate, should the project be undertaken in this case

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