Question $1$: Using Excel, prepare incremental cash flows for each alternative over the five years required to complete the innovation project and calculate the NPV for both projects. Assume a $6\%$ discount rate, calculate the payback period for the innovative replacement project, and summarize your findings. Make a specific recommendation, assuming no other relevant decision factors, and explain the factors that led you to that decision.

Question $2$: The innovative replacement program is estimated to last for $250$ years. Rerun your analysis again beyond the five$-$year current replacement cycle in $10-$year increments and determine the inflection point where the district would prefer to invest in the innovative program. If a project has a $250-$year life, should the district base capital investment decisions on a five$-$year analysis? Do you think $250$ years is a realistic time frame for the analysis? How reliable are your base assumptions with very long$-$range analysis? Using your long$-$term findings, make a specific recommendation, assuming no other relevant decision factors, and explain the factors that led you to that decision.

Question $3$: Relax your initial assumption that only the expected incremental cash flows are relevant. Make a list of at least five other important decision criteria and explain your reason for selecting each criterion. These criteria should include areas such as risk, ethics, the environment, and strategy, as well as modeling risks. Indicate whether each of these are short$-$term or long$-$term for the district. How would you incorporate these additional criteria in your overall decision?

Question $4$: Climate change, water shortages, and government mandates are putting increased pressure on municipalities to monitor and reduce their water use. Consumers and municipal bond investors $($and rating agencies$)$ are increasingly demanding "green" water and wastewater treatment programs $($consumers also want low rates and unrestricted access to water$).$ Issues of water rights, quality, management, equality of access, and conservation have all been topics of recent controversy and must be considered in the district's long$-$term strategic plan. List a set of five innovative goals that you believe the district could feasibly achieve by $2050$ in response to these