Question 3 (30 points): Consider escalation rates of 12% for all costs, 8% for all incomes, and an inflation rate of 5% applied to the following cash flow ear 4 0-15,000000 10 015000 Income0 10,000 9,500 9,00 8,500 8,000 9,500 9,000 8,500 3,0007500 L-10,000 C. Cost, I. Income, E. Environmental Remediation Cost, L: Salvage Value Page 1 of 2 Calculate the ROR in escalated dollars and in constant dollars for this investment project as points) Calculate the NPV in escalated dollars and in constant dollars for this investment project assuming a 10% escalated dollar minimum rate of return (15 points). a) b) Hiat. To calculate the NPV in constant dollars, you need to calculate the constant dollar minimum rate of retum. Question 4 (30 points): Using the cash flows from Question 3: a) Calculate the ROR in escalated dollars and in constant dollars for this investment project using escalation rates of 8% for all costs, l 596 for all incomes, and an uration rate of 7% (15 points). b) Calculate the NPV in escalated dollars and in constant dollars for this iavestmeut project considering 12% escalated dollar minimum rate of return (15 points). Hint Same hinl as above. ious