Show all your work 1. A company is considering an investment that would be the expected cash flows of $20,000 in year 1 (a single receipt), and between years 5-10 (including those years-6 receipts), the amounts would be $25,000 in year 5, decreasing by $2,500 each year through year 10, ($22,500 in year 6, $20,000 year 7, etc.). If the MARR is 6% per year compounded quarterly, would you undertake the project? Please explain the reasons with the numerical analysis. 2. A hydroelectric dam is expected to cost for $50 million initially. The overhaul cost can be categorized in two different categories. The major overhaul is expected $10 M every 7 years, and the minor overhaul costs are $2 million every 3 years. Apart from the overhaul costs operating and maintenance costs are $1 million every year. What would be the annualized cost of the hydroelectric dam, if the life of the dam is expected to last indefinitely? Assume the MARR is 10% per year 3. The cash flows associated with the two projects are given below. Project A 50,000 $15,000 Project B $68,000 $18,000 $3500 Initial Cost Annuat Cest years 1-5) Salvage value $500 What would be incremental rate of return (Hint: Consider the time value of money, and the total differences Considering the MARR of 10%, per year which project do you choose? If DN option exists, would your decision to Part B change? Why? a. b. c