A company is considering manufacturing and selling traffic safety equipment on the Ontario market. The company has examined the market by analysing data on the construction of new roads as well as the deterioration and replacement of current equipment. The initial investment is $ 250 000. Real dollar sales and cash flows are expected to be as follows: Table / Tableau 3 Cash flows in real dollars/ Period/Priode Flux montaires en dollars rels 0 -250 000 1 100 000 2 110 000 3 120 000 4 130 000 5 120 000 NMT a) The inflation rate is 5% per year. Convert project cash flows into actual dollars. b) If the project manager aims for a real MARR of 12% on the investment, what will be the present worth of the project. Is this project justified? c) The company is also evaluating another project (Project B) with an investment cost of $ 200 000 and an income of $ 58 000 per year in actual dollars. The duration of the project is also 5 years. What is the actual IRR for this project? d) If the real MARR remains at 12%, and inflation is 5%, is project B justified? e) Prove that you will take the same decision (as in part d) by calculating the PW of project B