1. Rate of return long dash—Annuity- What is the rate of return on an investment of ?$10,606 if the company will receive ?$2,000 each year for the next 10 ?years? The rate of return on the? investment, r?, is nothing?%. ?(Round to two decimal? places.)
2. A project costs $50,000, will be depreciated straight line to zero over its 3 year life, and will require a net working capital investment of $10,000 up front and get it back in the end. The project generates OCF of $30,000. The fixed assets sold for $8,000 at the end of the project. If the firm has a tax rate of 35% and a required return of 12%, what is the project NPV?