an At the end of 2019, Uma Corporation is considering a major long-term project in effort to remain competitive in its industry. The production and sales departments have determined the potential annual cash flow savings that could accrue to the firm if it acts soon. Specifically, they estimate that a mixed stream of future cash flow savings will occur at the end of the years 2020 through 2025. The years 2026 through 2030 will see consecutive $90,0000 cash flow savings at the end of each year. The firm estimates that its discount rate over the first 6 years will be 7%. The expected discount rate over the years 2026 through 2030 will be 11%. The project managers will find the project acceptable if it results in present cash flow savings of at least $860,000. The following cash flow savings data are supplied to the finance department for analysis. Year 2020 2021 2022 2023 2024 2025 2026 2027 Cash flow savings $110,000 120,000 130,000 150,000 160,000 150,000 90,000 90,000 90,000 90,000 90,000 2028 2029 2030 TO DO Create spreadsheets similar to Table 5.3, and then answer the following questions. a. Determine the value (at the end of 2019) of the future cash flow savings expected to be generated by this project. b. Based solely on the one criterion set by management, should the firm undertake this specific project? Explain. c. What is the "interest rate risk," and how might it influence the recommendation made in part b? Explain. Uma Corp. End of year Period Cash Flow Savings PV of Cash Savings 2020 1 $110,000 $102,804 2021 2 $120,000 $104,813 2022 3 $130,000 2023 4 $150,000 2024 5 $160,000 2025 6 $150,000 2026 7 $90,000 2027 8 $90,000 2028 9 $90,000 2029 10 $90,000 2030 11 $90,000 Total $1,270,000 Sum(D6.016) (a) (b) The project should be undertaken if the present cash flow savings are grater than the required $860,000. The project should not be undertaken if the present cash flow savings are less than the required $860,000. (c) Interest rate risk