A new model of "Hybrid" Car has been introduced by a major automotive brand. A Cyprus team wishes to make an investment in servicing the new brand. The figures are as follows: The life of the investment will be ten (10) years. The projected inflows for year 1 will be of the order of 25,000, decreasing by 5% each year thereafter. The projected outflows to support the investment will be of the order of 1,000, increasing by 100 each year thereafter. Your MARR is of the order of 15%. (a) Calculate the Present Worth of the anticipated revenues of this investment. b) Calculate the Present Worth of the anticipates expenses of this investment [10 marks] 10 marks] c) Calculate the maximum investment level (P) you can make to develop this infrastructure. [10 marks] A1 = 25,000 L 1 2 3 A = 1,000 MARR = 15% g=-5% G= 100 8 9 10 P? Figure 1. Projected Cash flows of "Hybrid" Car infrastructure investment