5. [20 points] Consider the following financial data for a project: Initial investment $50,000 Project life 8 years Salvage value $10,000 Annual revenue $25,000 Annual expenses (including income taxes) $ 9,000 a. What is i* for this project? b. If the annual expense increases at a 7% rate over the previous year's expenses, but the annual income is unchanged, what is the new i*? c. (Bonus question - 10 points) In part (b), at what annual rate will the annual income have to increase to maintain the same obtained in part (a)