Il preparation for a capital budgeting analysis, calculate the cash flows for this project at t=0, tri, t-2, t.3, and t-4. Highlight (25) 4. (A) You are in charge of making calculations for the Seth & Company's defined benefit pension plan. For the next twenty years (ie.. from tal through t=20) the company's estimated pension fund payments (i.e., payments that must be made to pension fund beneficiaries) will be $3 million per year. For the fifteen years after that (i.e., from t-21 through t-35) the company's estimated pension fund payments will be $6 million per year. Currently the company's pension fund has assets of $40 million. These assets are required to be sufficient to make all future estimated pension fund payments. Please note that if a company's pension fund has more assets than necessary, it is over-funded; if a company's pension has fewer assets than necessary, it is under-funded. If Seth & Company assumes a rate of return of 7% on its pension fund assets, is the company's pension fund over-funded, is the company's pension fund under-funded, or does the company's pension fund have exactly as much as is required? If over/under tunded, how much is this over/under funding? (B) Celia & Company has a pension fund that is under-funded (i.e.. there is less than required in the company's pension fund). Celia & Company currently assumes it will earn a rate of If Celia & Company return of 68 on its pension fund assets. changes its assumed rate of return from 6 to 7), ita pension fund will still be under-funded. If the assumed rate of return changes from 6 to 71. will the amount of the calculated under-Cunding increase, decrease, or remain the same? Briefly explain your answer. o