Problem 2 (60 Points) Siemens Company has an opportunity to supply wind power systems to Midwestern Energy, an energy company in the Midwest of the United States. Midwestern Energy will pay $5 million upfront i.e. when the contract is signed and $1 million one year later. Siemens had obtained loan from Bank of America (investment bank) prior to the initial payment from Midwestern Energy, and invest $ 3 million from it at the beginning of the project. Subsequently, Siemens spend S 1.5 million, $ 7.5 million, $ 2.5 million, 2 million, and $ 1.5 million as running cost for the first, second, third, fourth and fifth year respectively. In the third year Midwestern Energy will deposit 7.5 million into Siemens business account. Midwestern Energy will take delivery of the power system during Year 4, and agrees to pay $ 2.25 million at the end of that year and the $3 million balance at the end of year 5 a) Generate a table depicting the cash flow estimates for the Project b) Draw the cash flow diagram for the cash flow estimates c) Determine the number of rates of return values this project is likely to have. d) Obtain the values for the rate of return using Microsoft Excel (Spreadsheet). These values should be obtain by plotting the Present worth against the range of rate of return values (0 % to 100 %, step increase of 5 %) Siemens management have set a MARR of 15% for any of their project; will you advised Siemens to embark on this project knowing the net positive cash flow received from Midwestern Energy is reinvested at 14%. The loan Siemens obtained from Bank of America for the production of the wind power system, is borrowed at a rate of 7 % e)