The African Development Bank is considering a proposal from the Zambian government for a hydro dam project. Selected project cost and benefits (dollar values) are as follows: Construction costs: $90,000/year for 3 years Operating costs: $15,000/year Hydropower to be generated: 1 million kilowatt hours/year Price of electricity: $1.5/kilowatt hour Irrigation water available from dam: 5 million gallons/year Price of water: $0.75/gallon Agricultural product lost from flooded lands: $5,000/year Active life time of the project is 15 years (for the sake of simplicity) Interest rate is 15 percent Assume that the project incurs no ecological and other costs than stated above. (a) Calculate the NPV. (b) Calculate the profitability index. (c) Do you suggest approval/rejection of the project? Why?