An investment project has the following cash flow: C0…
An investment project has the following cash flow: C0=$15,000 C1=$12,000 C2=$10,000 I3=$8,500 I4=$8,000 I5=$7,500 I6=$7,000 I7=$7,000 I8=$7,000 0 1 2 3 4 5 6 7 8 C: Cost, I: Income Consider escalation rate of 12% for the costs, escalation rate of 8% for incomes and inflation rate of 6% Calculate the ROR for constant dollar cash flow of this investment project. Explain your work in detail including all the required equations and calculations.