(1) Assume the annual interest/discount rate is 3%. Calculate the present value of a future dollar and fill in the form below. [10 Marks]

Year	discount rate = 3%
0	1.000
1
2
3

(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? [10 Marks]

	Year 0	Year 1	Year 2	Year 3
Benefits
Benefits at Present Value
Accumulated Benefits at Present Value
Costs
Costs at Present Value
Accumulated Costs at Present Value
Net Present Value

(3) Based on your calculation, should the project be proceeded? [10 Marks]