Question 3 (40 points): Consider an escalation rate of 15% for all costs, 14% for all incomes, and an inflation rate of 7.5% for the following cash flow. At the end of project life, abandonment cost will be 31,000 and equipment could be sold for 23,000. Year 0 1 2 3 4 5 6 7 8 9 Cost -30,000 0 0 0 -30,000 0 0 0 0 0 Income 0 11,500 9,500 9,900 9,900 9,900 9,900 9,900 9,900 9,900 a) Calculate the IRR in escalated dollars and in constant dollars for this project. b) Calculate the NPV in escalated dollars and in constant dollars for this project with an escalated- dollar minimum rate of return of 14%