The Rodriguez Company is considering an average-risk investment in a minerai water spring project that has an initial after-tax cost of $155,000. The project will produce 1,000 cases of mineral water per year indefinitely, starting at Year 1 . The Year-1 sales price will be $135 pee case, and the Year- 1 cost per case will be $106. The firm is taxed at a rate of 25%. Both prices and costs are expected to rise after Year I at a rate of 7% per, year due to inflation, The firm uses only equity, and it has a cost of capital of 16%. Assume that cash fows consist only of after-tox profits because the spring has an indefinite ife and will not be depreciated. a. What is the present value of future cash flows? (hint: The project is a growing perpetuity, so you must use the constant grewth formula to find its NPV) What is the NPY? Do not round intermediate calcutations. Round your answers to the nearest dollar, Negative values, if any, should be indicated by a minus sign: PV of future CFi: $ NPN: 5 b. Suppose that the company had forgotten to include future inflution. What would ther have incorrectly calculated as the prejectin Nivi De ret round infermediate calculatipns. Round vour answer to the nearest dollar. Negative value, if arry, should be indicated by a minis sign. s