Please attempt this question and show your work and each step so I can follow your logic and compare to mine.

Question 3: Ination [8 marks) A construction company is engaged in a three-year renovation project. Contract payments are made on the last day of each year based on the progress made during the year. The amount of the annual payment includes the amount due for material costs and manpower as listed in the table below. Note that the first payment is due today, 2021-12-31 (Year 0), the second is due one year from today and the third is due two years from today. 20211231 20221231 20231231 Material Costs in Real 2021 $100,000 $200,000 $140,000 Dollars Manpower Costs in Current $90,000 $110,000 $130,000 Dollars The company uses a MARR of 12% for construction projects of this type. The inflation rate is anticipated to be 4% per year for the next few years. a) What is the Real MARR? b) What is the amount of the 3rd payment (including material and manpower) due to the company on 20231231 in current dollars? c) What is the amount of the 2"d payment (including material and manpower) due to the company on 2022-12-31 in 2021 real dollars? d) What is the Present Worth of the project