Total Points 4 points Suppose you are evaluating an option to invest in a project that requires an upfront investment of $12 million today (t=0) The project will require a construction period of 2 years and will not generate any revenue during the construction period Therefore, any positive cashflow will start only from year 3 Should you invest in the project if the rate of annual compounding is 8% ? Show your calculations, (make the timeline with years and cashflows) 2 points Suppose that the project generates $500,000 in positive cashflows in year 3 . Every year thereafter, the project's CFs grow at 0.5% and continue to do so perpetually. Should you invest in the project if rate of annual compounding is 10% ? Show your calculations, (make the timeline with years and cashflows) Total Points 4 points Suppose you are evaluating an option to invest in a project that requires an upfront investment of $12 million today (t=0) The project will require a construction period of 2 years and will not generate any revenue during the construction period Therefore, any positive cashflow will start only from year 3 Should you invest in the project if the rate of annual compounding is 8% ? Show your calculations, (make the timeline with years and cashflows) 2 points Suppose that the project generates $500,000 in positive cashflows in year 3 . Every year thereafter, the project's CFs grow at 0.5% and continue to do so perpetually. Should you invest in the project if rate of annual compounding is 10% ? Show your calculations, (make the timeline with years and cashflows)