You are faced with a decision on an investment proposal. Specifically, the estimated additional income from the investment is $125,000 per year; the investment cost is $400,000; and the first year estimated expense of $20,000 and will increase a rate of 5% per year. Assume an 8-year analysis period, no salvage value, and MARR = 15% per year. a. Calculate the PW and FW of this proposal? (15points)

b. What is the ERR ( Ԑ=MARR) of this proposal? (10 points)

c. What is the Simple and Discounted payback? (15 points)

(Upload the picture of your complete solutions including the correct cash flow diagram (5points) and your conclusion.)