As the project manager, you must evaluate whether it is economical to develop a project requiring expenditures in 2019 of $30,000 for land, $50,000 for inventory working capital, $80,000 for a business building, $250,000 for equipment, and $60,000 for vehicles. Starting in 2020, estimated production will generate annual end-of-year escalated revenue of $550,000 with escalated operating costs of $400,000. In the following years, operating costs are expected to escalate at 10% per year and revenue will escalate at 8 % per year. At the end of 2026, all the assets and working capital should generate escalated terminal revenue of $250,000. 1) Determine the investment DCFROR assuming a 40 % effective income tax rate. Use straight line depreciation over 39 years for the building cost starting in 2020, assuming service starting in February of 2020; MACRS depreciation for a 7 year life for the equipment cost starting in 2020 with the half-year convention; and MACRS depreciation for a 5 year life for the vehicle cost starting in 2020 with the half-year convention. Assume the terminal value gain is taxed as ordinary income. Take a write-off on all of the remaining tax book values at the end of 2026. 2) For an after tax escalated dollar minimum rate of return of 15 %, determine NPV and PVR