a. Calculate the ROR in escalated dollars and in constant dollars for this investment project using escalation rates of 9% for all costs, 9% for all incomes, and an inflation rate of 5% (15 points).

b. Calculate the NPV in escalated dollars and in constant dollars for this investment project considering 10% escalated dollar minimum rate of return (15 points).

Hint: To calculate the NPV in constant dollars, you need to calculate the constant dollar minimum rate of return.

Year Cost Income C) E--25,000 9,000 | 8,000 | 7,000 | 6,000 | 9,000 | 8,000 | 7,000 | 6,000 | 5,000 | L=15,000 C) C) C) C) C) C) C) C) C) C: Cost, I: Income, E: Environmental Remediation Cost, L: Salvage Value Year Cost Income C) E--25,000 9,000 | 8,000 | 7,000 | 6,000 | 9,000 | 8,000 | 7,000 | 6,000 | 5,000 | L=15,000 C) C) C) C) C) C) C) C) C) C: Cost, I: Income, E: Environmental Remediation Cost, L: Salvage Value