(1). Assume the annual interest/discount rate is 3%. Calculate the present value of a future dollar and fill in the table below (Note: Use two decimals numbers and don't round the values.).

(2). An information system project takes $12K to develop and requires $2K to maintain its normal operation each year. The system generates $5K benefit each year since its operation. What is the projects net present value in 3 years?

(3). Based on your calculation, should the project proceed?

(1) Answer

Year	discount rate = 3%
0	1.00
1
2
3

(2) Answer

	year 0	year1	year2	year3
benefits
Benefits at Present Value
Accumulated Benefits at Present Value
costs
Costs at Present Value
Accumulated Costs at Present Value
Net Present Value