Guelph Inc are considering investing in a project requiring a $20,000 first cost and having an expected duration of five
years. They have signed contracts that will result in them paying $2,000 per year in operating costs. Using year 2023
values, annual revenue will be $8,000. Calculate the project's present worth if the actual interest rate is 5%, the
expected annual inflation is 2%, and the salvage value is expected to result in a $5,000 income at the end of life.
State whether each of the cash flows is actual, real, or both.