3. An oil pipeline will cost 19,000,000 to install. If installation starts to- day, it...
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3. An oil pipeline will cost 19,000,000 to install. If installation starts to- day, it will be complete in two years and half of the cost must be paid at the end of each year of the installation process. Once installed, it will allow the oil company installing it to save $3,000,000 per year at the end of each of the first five years of operation, $2,000,000 per year in the next five years of operation and zero thereafter. The annual in- terest rate is 5%. Should the company invest in the pipeline? Justify your
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