Applied Instrumentation, a small manufacturer of custom electronics, is contemplating an investment to produce sensors and control systems that have been requested by a fruit-drying company. The work would be done under a proprietary contract that would terminate in five years. The project is expected to generate the following cash flows in actual dollars. Assume an inflation rate of 4% and an inflation free MARR of 8%. Complete an actual dollar analysis. (Problem context inspired by Park, Example 11.6.)

n	Net Cash Flow in Actual Dollars
0	-75000
1	32000
2	35700
3	32800
4	29000
5	58000

Use the adjusted discount method for the following three questions.

1) PW of project?

2nd question

Use the deflation method

What would be the cash flow you would use for the deflation method in year 4? Round to the nearest integer.