At the end of 2017, Palmer Corporation is doing its 10-Years long-term business planning for a plantation project in an effort to remain competitive in the plantation industry. The sales & marketing department have estimated a mixed stream of future cash flow savings that will occur at the end of the years between 2018 through 2027. The corporation estimates that its discount rate over the first 6 years and the last 4 years will be 10% and 8% respectively. The firm Board of Directors will find the project acceptable if it results in present cash flow savings of at least $1 million. The following cash flow savings data are prepared for the finance department analysis. End of the year Cash flow savings ($) 2018 110,000 2019 140,000 2020 120,000 2021 160,000 2022 205,000 2023 240,000 2024 230,000 2025 210,000 2026 200,000 2027 200,000 Create spreadsheets similar to Table 5.2 of your text book and answer the following questions. In addition to the spreadsheets, you are also required to show workings. a. Calculate the present value of the project future cash flow savings expected to be generated. b. Based solely on the one criterion set by the Board of Directors, should the firm undertake this specific project? Explain. c. If the firm revises its estimates of the discount rates over the first 6 years and the last 4 years to 11% and 12% respectively to reflect higher cost of capital in future, how will that change your answers of part (a) and (b)? Should the firm undertake the project? d. What is the "interest rate risk," and how might it influence the recommendation made in part (b)? Explain.