Please only answer if you know the answer to it.

3. Inflation in project analysis Aa Aa E It is often easy to overlook the impact of inflation on the net present value of the project. Not incorporating the impact of inflation in determining the value of the cash flows of the project can result in erroneous estimations. Consider the following scenario: Sto Associates Co. is considering opening a new division to produce units that it expects to sell at a price of $12,990 each in the first year of the project. The company expects the cost of producing each unit to be $7,100 in the first year; however, it expects the selling price and cost per unit to increase by 1% each year. Based on the preceding information, the company expects the selling price in the fourth year of the project to be and it expects the cost per unit in the fourth year of the project to be