You are the head of LA Port Authority debating an expansion to accept $10\%$ more cargo per day.

The expansion will cost $$50,000,000$ and result in annual cost savings of $$2,000,000$ alongside

revenues of $$8,000,000.$ The expansion will operate for ten years before needing replacement.

You can currently obtain subsidized funding from the FTA at $3\mathrm{.}5\%.$

a$.$ Based on the NPV rule, should you pursue the project?

b$.$ Based on the IRR rule, should you pursue the project?

c$.$ If your CEO requires a payback of $<mn\; id="EditorElement\_1567678">5</mn>$ years, should you pursue the project?

d$.$ Should you pursue the project if your CEO requires a discounted payback of $<mn\; id="EditorElement\_1567549">5</mn>$ years?

e$.$ Should you accept the project based on the profitability index?