Initial investment, $ Annual revenues, $ Annual operating costs, $ Inflation free interest rate Salvage value, $ Working capital, $year 0 CCA, % Tax rate, % Service life, years 40,000 30,000 10,000 12% 2,000 3,000 30% 40% 3 a. Develop the constant dollar net cash flow and calculate the PW of the project. b. A general inflation rate of 5% impacts the project. Based on this information calculate the PW of the project. Initial investment, $ Annual revenues, $ Annual operating costs, $ Inflation free interest rate Salvage value, $ Working capital, $year 0 CCA, % Tax rate, % Service life, years 40,000 30,000 10,000 12% 2,000 3,000 30% 40% 3 a. Develop the constant dollar net cash flow and calculate the PW of the project. b. A general inflation rate of 5% impacts the project. Based on this information calculate the PW of the project