1) A twelve-year investment project requires an initial investment of $200,000 at inception and maintenance expenses at the beginning of each year. The maintenance expenses for the first year is $5,000 and is anticipated to increase 7% each year thereafter. Projected annual returns from the project are $40,000 at the end of the first year decreasing 3% per year thereafter. Construct the cash flow table.

2) Find the net present value of Problem 1 at interest rate of 8%

3)Using the derived cash flows of Problem 1, find the internal rate of return of the project.