A B D E F G End of year Period Cash Flow Savings PV of Cash Savings 5 5 2020 1 7 2021 2 8 2022 3 9 4 10 5 2023 2024 2025 2026 6 $110,000 $120,000 $130,000 $150,000 $160,000 $150,000 $90,000 $90,000 $90,000 $90,000 $90,000 $102,804 $104,813 $106,119 $114,434 $114,078 $99,951 $43,349 $39,053 $35,183 $31,697 $28,555 7 12 13 2027 8 14 2028 9 2029 10 15 16 2030 11 17 Total $1,270,000 Sum(06:016) $820,036 (a) 18 19 20 Present Cash Flow Savings 21 22 23 24 (b) The project should be undertaken if the present cash flow savings are grater than the required $860,000 25 The project should not be undertaken if the present cash flow savings are less than the required $860,000. 26 27 28 (C) Interest rate risk 29 A B D E F G End of year Period Cash Flow Savings PV of Cash Savings 5 5 2020 1 7 2021 2 8 2022 3 9 4 10 5 2023 2024 2025 2026 6 $110,000 $120,000 $130,000 $150,000 $160,000 $150,000 $90,000 $90,000 $90,000 $90,000 $90,000 $102,804 $104,813 $106,119 $114,434 $114,078 $99,951 $43,349 $39,053 $35,183 $31,697 $28,555 7 12 13 2027 8 14 2028 9 2029 10 15 16 2030 11 17 Total $1,270,000 Sum(06:016) $820,036 (a) 18 19 20 Present Cash Flow Savings 21 22 23 24 (b) The project should be undertaken if the present cash flow savings are grater than the required $860,000 25 The project should not be undertaken if the present cash flow savings are less than the required $860,000. 26 27 28 (C) Interest rate risk 29