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Consider escalation rates of 12.5% for all costs and 8% for all incomes applied to the following cash flow: C: Cost, I: Income, E: Environmental

Consider escalation rates of 12.5% for all costs and 8% for all incomes applied to the following cash flow:image text in transcribed

C: Cost, I: Income, E: Environmental Remediation Cost, L: Salvage Value

Calculate the escalated dollar cash flow (5 points).

Calculate the escalated dollar ROR (5 points).

Calculate the escalated dollar Discounted Cash Flow and NPV, consider the escalated dollar minimum rate of return as 10% (10 points).

10 12 Year Cost E-20,000 8,000 12,00012,00011,000 11,000 10,000 10,000 9,000 9,000 8,0008,0007,0007,000

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