is 10% per year. 2. Study Period, Inflation Inflation is 2% per year. There are no taxes. Your real company is considering the two following projects: per y Your Project 1: Put $100,000 in a savings account for 30 years. The savings account pays 15% nominal interest year. You deposit the $100,000 in Year 0, and withdraw the deposit and accumulated interest in Year 30. per Proiect 2: Pay $100,000 in Year 0 for 100 years of mineral rights to a small vibranium deposit in Wakanda. The deposit would yield real income of $50,000 in Year 1 . Every year after that, real income would fall by 5%. The last income payment would be in Year 100. Use a 30-year study period and net present value to compare the two projects and decide which one is preferred To do this, there are two additional facts you should take into account: Year 0, the present, is the base year for the purpose of inflation calculations. The Wakandan government is always willing to buy back the mineral rights in Project 2 for 50,000 nominal dollars. This may be done at any time. (Hint: Use this to calculate a residual value for Project This question is challenging. You may wish to leave it until the end of the exam, a. (4 marks) Using a 30-year study period, what is the net present value (NPV) of Project 1? Show your work Project 1 NPV (30-year study period):$ Work