EET EXERCISE it acts years 2026 through 2030 will be 11%. flow savings of at least $860,000, The following cash flow savings data are supplica At the end of 2019, Uma Corporation is considering a major long-term project in an effort to remain competitive in its industry. The production and sales departments have determined the potential annual cash flow savings that could accrue to the firm if it occur at the end of the years 2020 through 2025. The years 2026 through 2030 will see soon. Specifically, they estimate that a mixed stream of future cash flow savings will consecutive $90,0000 cash flow savings at the end of each year. The firm estimates that its discount rate over the first 6 years will be 7%. The expected discount rate over the The project managers will find the project acceptable if it results in present cash c. What is the "interest rate risk," and how might it influence the recommendation Year Cash flow savings 2020 $110,000 2021 120,000 2022 130,000 2023 150,000 2024 160,000 2025 150,000 2026 90,000 2027 90,000 2028 90,000 2029 90,000 2030 90,000 TO DO Create spreadsheets similar to Table 5.3, and then answer the following questions. a. Determine the value (at the end of 2019) of the future cash flow savings expected to be generated by this project. b. Based solely on the one criterion set by management, should the firm undertake this specific project? Explain. made in part b? Explain