1. A 3-year project project with an initial cost of $2,704 promises the following cash flows for years 1 through 3, respectively: $1,653, $1,501, $1,495. If you require a 5.8 percent rate of return on this project, what is the net present value?
2. A project with an initial cost of $6,966 is expected to generate cash inflows of $2,986 every year for the next 10 years. What is the payback period?