An individual acts as a finder, facilitating mergers and acquisitions of companies that are both publicly and privately held. the individual searches for companies that appear to be compatible and that will either enjoy a revenue enhancement or cost reduction benefit from the transaction. the individual just introduces the parties to the proposed transaction, but has no involvement in the agreements or valuation. upon the closing of the deal, the individual is paid a percentage of the transaction. under nasaa rules, this individual:

You are the manager of a large crude-oil refinery. as part of the refining process, a certain heat exchanger (operated at high temperatures and with abrasive material flowing through it) must be replaced every year. the replacement and downtime cost in the first year is $165 comma 000. this cost is expected to increase due to inflation at a rate of 7% per year for six years (i. e. until the eoy 7), at which time this particular heat exchanger will no longer be needed. if the company's cost of capital is 15% per year, how much could you afford to spend for a higher quality heat exchanger so that these annual replacement and downtime costs could be eliminated?