To Do Create spreadsheets similar to Table 5.2, and then answer the following questions 1 Determine the present value of the future cash flow savings expected to be generated by this project. b. Based solely on the one criterion sct by management, should the firm undertake this specific project? Explain. c. What is the interest rate risk, and how might it influence the recommendation made in part b? Explain. Solution W Determine the value of the future cash flow savings expected to be generated by this project. 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Discount rate for years 2020-2025 Discount rate for years 2026 - 2030 7% 11% Present Value $ Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year (0) 1 2 3 4 5 6 7 8 9 10 11 Cash Flow 110,000 120,000 130,000 150,000 160,000 150,000 90,000 90,000 90,000 90,000 90,000 + 19 0 1 2 3 b. Based solely on the one criterion set by management, should the firm undertake this specific project? Explain Based solely on the criteria set by management, the firm of the expected future savings total undertake this project as the present value than the S860,000 hurdle. which is