Should I recalculate the Revenues = old revenue * the inflation to adjust the cash flows and NPV, IRR AND MIRR.

Assume inflation is expected to be 3% each year for years 2 through 5 and that this expectation is already included in the WACC- 9.26%.

PROJECT OPERATING CASH FLOWS Year 1 2 3 4 5 Revenues 140.000 $ 168.750 $ 191.250 $ 163.125 $ 141.375 Variable costs 55% 77.000 $ 92.813 $ 105.188 89.719 $ 77.756 Fixed costs 35.000 $ 35.000 $ 35.000 $ 35.000 $ 35.000 Depreciation 28.600 S 28.600 28.600 28.600 $ 28.600 Operating Income (0.600) $ 12.338 $ 22.463 $ 9.806 $ 0.019 Tax (30%) (0.180) $ 3.701 6.739 2.942 0.006 After Tax Profit (0.420) $ 8.636 $ 15.724 $ 6.864 $ 0.013 Depreciation 28.600 S 28.600 28.600 S 28.600 28.600 Operating Cash Flow 28.180 37.236 S 44.324 $ 35.464 28.613 ROJECT TERMINATION CASH FLOWS Return of Working Capital 1.000 Salvage Value 5.000 Tax on Salvage Value (30%) (1.500) 4.500