You are an entrepreneur who has a proprietary technology that allows investing $$12,000$ today in a $($non$-$scalable$)$ project that yields $$5,000$ in a year, $$6,000$ in two years, $$8,000$ in three years, and nothing from then on$.$ These cash flows are known to be risk$-$free, and hence require the discount rate equal to the risk$-$free rate of $5\%.$ You can also borrow at or lend money to the bank at $5\%.$

$3\mathrm{.}1)$ What is the NPV of this project?

$3\mathrm{.}2)$ Write down a financial strategy that you would pursue if you want to smooth your consumption perfectly $($i$.$e$.$ consume the same amount in every period$).$ How large can this cash flow be$?$