This HW related with Geo-resources evaluation and investment analysis

Consider an escalation rate of 10% for all costs (including environmental remediation cost) and 7% for all 1th incomes (including salvage value) for a project. At the end of 1 year, the project a salvage value of $7,000 and an environmental remediation cost of $12,000. Year 0 1 2 3 4 5 6 7 8 9 10 1 1 Cost -50,000 -16,000 0 0 0 0 0 0 0 0 0 0 Income 0 14,000 12,000 10,000 10,000 9,000 9,000 8,000 8,000 7,000 7 ,000 6,000 a) Calculate the escalated-dollar cash ow b) Calculate the escalated-dollar IR 0) Calculate the escalated-dollar NPV, using an escalated-dollar minimum rate of return of 11%