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Given the following financial data for a Project: Year Investment or Ops Cost Revenue / Payback 0 $ 1 0 0 , 0 0 0

Given the following financial data for a Project:
Year Investment or Ops Cost Revenue/Payback
0 $100,0000
1 $10,000 $5,000
2 $5,000 $10,000
3 $4,000 $20,000
4 $3,000 $30,000
5 $2,000 $40,000
6 $1,000 $50,000
a) Draw a Yearly Cash Flow diagram for the Project.
b) Is this a Simple or Non-Simple Investment?
c) Draw a Cumulative Cash Flow Diagram for the Project, showing a NPW curve for each of the following Interest Rates: 0%,5%,10%.
d) What is the NPW of the entire Project evaluated at Year 0 at i=5%? Show the method to calculate the NPW.
e) What is the NFW of the entire Project at the end of Year 6 at i=5%? Show the method to calculate the NFW.
f) What is the AE of the Project at i=5%? Show the method to calculate the AE.
g) If in Year 3, the Investment changes to $25,000 for just that year, how many i* possibly result from that change? Is this a Simple or Non-Simple Investment? Show the method to determine the number of resulting i*-- You dont need to calculate the i* value(s).

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