A project has cash flows of +$100 (now at time 0), and -$100, +$100, and -$100 at the end of consecutive years. The interest rate is 6% per annum.
(a) What is the project's NPV?
(b) How does the value change if all cash flows will occur 1 year later?
(c) Repeat these two questions, but assume that the 1-year (annualized) interest rate is 5%, the 2-year is 6%, the 3-year is 7%, the 4-year is 8%, and so on.