You have just started a new business firm dealing with Geomatics, and you are expecting a financial profit from a contract offer of a private sector project dealing with geodesy and photogrammetry. The project under consideration must be completed in Y years; it requires a cutting-edge technology GPS receiver (total cost of a single receiver is $8,999) and a platform for light weight UAV including photogrammetric equipment such as high resolution camera, gimbal, batteries, other sensors etc. (total cost of UAV platform and equipment is $45,251). The project is expected to bring in annual revenue of $20*A given as today's dollars; however, with an additional annual O&M cost of $22,000 in actual dollars. The project requires an investment in working capital (WC) in the amount of $1,000*W at year 0. Working capital investment is not subject to the general inflation rate and this investment will be recovered after the project is terminated. All equipment which will be bought falls into the MACRS five-year class, and once the project is completed, all of the equipment can be sold for $S in today's dollars. Because you have just recently started-up the firm, the project will be funded by a bank loan of B% of the total investment cost (excluding WC) at an interest rate of M% (also equal to market interest rate) over a three-year period. The firm will make equal annual payments to pay off the loan. You expect a general inflation rate of IN% per year during the project period, and the firm's marginal tax rate is 45%. e) Assuming a worst case scenario of 15% decrease in revenue in today's dollars and a 5% increase in O&M costs in actual dollars (both will simultaneously affect the project), how will the net present worth of this project at year o be affected? (20 points) Note1: "market interest rate" = "inflation-adjusted MARR" Note2: * is the simple multiplication operator (i.e. 2*2 = 4) You have just started a new business firm dealing with Geomatics, and you are expecting a financial profit from a contract offer of a private sector project dealing with geodesy and photogrammetry. The project under consideration must be completed in Y years; it requires a cutting-edge technology GPS receiver (total cost of a single receiver is $8,999) and a platform for light weight UAV including photogrammetric equipment such as high resolution camera, gimbal, batteries, other sensors etc. (total cost of UAV platform and equipment is $45,251). The project is expected to bring in annual revenue of $20*A given as today's dollars; however, with an additional annual O&M cost of $22,000 in actual dollars. The project requires an investment in working capital (WC) in the amount of $1,000*W at year 0. Working capital investment is not subject to the general inflation rate and this investment will be recovered after the project is terminated. All equipment which will be bought falls into the MACRS five-year class, and once the project is completed, all of the equipment can be sold for $S in today's dollars. Because you have just recently started-up the firm, the project will be funded by a bank loan of B% of the total investment cost (excluding WC) at an interest rate of M% (also equal to market interest rate) over a three-year period. The firm will make equal annual payments to pay off the loan. You expect a general inflation rate of IN% per year during the project period, and the firm's marginal tax rate is 45%. e) Assuming a worst case scenario of 15% decrease in revenue in today's dollars and a 5% increase in O&M costs in actual dollars (both will simultaneously affect the project), how will the net present worth of this project at year o be affected? (20 points) Note1: "market interest rate" = "inflation-adjusted MARR" Note2: * is the simple multiplication operator (i.e. 2*2 = 4)