Calculate the annual cost of service and transportation tariff to be charged for shipments through a refined products pipeline as follows. The pipeline is 90 km long, 400 mm diameter and 8 mm wall thickness and constructed of steel with a yield strength of 448 MPa. The terrain is essentially flat. It is used to transport gasoline (specific gravity=0.74 and viscosity=0.65 cSt at 60°F) at a flow rate of 2000 m3 / hr. The annual operating costs such as O&M, G&A, etc., are estimated to be $2 million and do not include power costs. Assume a power cost of $0.10 per kWh for the electric motordriven pumps. The project will be financed at a debt/equity ratio 70/30. The interest rate on debt is 7% and the rate of return allowed by regulators is 14%. Assume a project life of 25 years and overall tax rate of 35%.