c) Using the time value of money and a 5-year life for this project, what is the present value of all of I. M.'s costs? This is a problem that involves separating items by time period, summing the items, which will have the same present value factor, and then calculating the present value. We then sum all present values to determine total costs. d) Using the time value of money, and a 5-year life for this project, what is the present value of all ofI. M.'s benefits? To calculate these items, we must use the present value of an ordinary annuity formula for sales and depreciation and the future value of a lumps sum for salvage PY For sales usc i of 8% +12with n.60 PV . $2.000(49 3 1 84) . S98-63687 For dpreciation use i of 8% and m-5 PV-$60039927)-$2.395.63 For salvage value useiof8% and n of 5 PV-55,0000 6806)-$3,402.92 Total Benefit-$98636.87+52,395.63+53,40292 -5104 43542 e What is the NPV of the delivery service? 104,435.42 What is the PI of the delivery service? e What is the payback? h What recommendation would you give I. M. with regard to this project? c) Using the time value of money and a 5-year life for this project, what is the present value of all of I. M.'s costs? This is a problem that involves separating items by time period, summing the items, which will have the same present value factor, and then calculating the present value. We then sum all present values to determine total costs. d) Using the time value of money, and a 5-year life for this project, what is the present value of all ofI. M.'s benefits? To calculate these items, we must use the present value of an ordinary annuity formula for sales and depreciation and the future value of a lumps sum for salvage PY For sales usc i of 8% +12with n.60 PV . $2.000(49 3 1 84) . S98-63687 For dpreciation use i of 8% and m-5 PV-$60039927)-$2.395.63 For salvage value useiof8% and n of 5 PV-55,0000 6806)-$3,402.92 Total Benefit-$98636.87+52,395.63+53,40292 -5104 43542 e What is the NPV of the delivery service? 104,435.42 What is the PI of the delivery service? e What is the payback? h What recommendation would you give I. M. with regard to this project