Question 1

A project, that consists of just readjusting some parts to adapt them to assemble to electric cars, would produce net revenues of $180,000 per year, for 10 years. Assuming that these revenues will grow at a constant 2% per year, and are assessed at a cost of capital of 4%:

1. Would it still be profitable if it required an initial investment of $1,500,000?
2. If we take these annual revenues of $180,000 growing at a 2% per year, and we invest them in a bank account that offers an annual rate of 5% for 10 years, how much will we have at the end?