A project has cash flows of +$100 (now at time 0), and $100, +$100, and $100 at the end

of consecutive years. The interest rate is 6% per annum.

(a) What is the projects NPV?

(b) How does the value change if all cash flows will occur 1 year later?

(c) Repeat these two questions, but assume that the 1-year (annualized) interest rate is

5%, the 2-year is 6%, the 3-year is 7%, the 4-year is 8%, and so on.