just number 2 please

0 Question 1 (30 points): Consider an escalation rate of 20% for all costs (including environmental remediation cost) and 15% for all incomes (including salvage value) for a project. At the end of 11th year, the project has a salvage value of $10,000 and an environmental remediation cost of $15,000. Year 1 2 3 4 5 6 7 8 9 10 11 Cost -50,000 -16,000 0 0 0 0 0 0 18,000 19,000 12,000 12,000 11,000 11,000 9.000 9.000 9,000 8,000 7,000 a) Calculate the escalated-dollar cash flow b) Calculate the escalated-dollar IRR c) Calculate the escalated-dollar NPV, using an escalated-dollar minimum rate of return of 12%. 0 0 0 0 Income Question 2 (30 points): Same as question 1, but now consider an inflation rate of 7.5%: a) Calculate the constant-dollar cash flow b) Calculate the constant-dollar IRR c) Calculate the constant-dollar NPV (hint: one needs to calculate constant-dollar min ROR using Fisher's rule)