Greyhound has opened a new bus route; the initial investment cost of the route was $55,000. It will produce $30,000 (in constant dollars) of revenue annually for 6 years. The real MARR is 8% and there will be 2% inflation annually.

a) Determine the current cash flows for each year taking into account the inflation rate (actual dollar cash flows). [2 points]

b) Find the PW for the investment (using above actual dollar cash flow values Hint: It would be easier to calculate the PW if you rounded the market MARR DOWN to the nearest whole number. [2 points]

c) Was the investment worth undertaking? Why? [1 point + 1 point]