1. A project has annual cash flows of $6,000 for the next 10 years and then $5,500 each year for the following 10 years. The IRR of this 20-year project is 12.17%. If the firm's WACC is 12%, what is the project's NPV? Round your answer to the nearest cent.
2. If one system future value is $11,790,890 and another one is $11,800,590. Which one is the best system?
3. Effective cost of Bank Loans. Assume all loan problems are for $100,000 and repayable in exactly one year in a lump sum.
Interest rate is 5%, no fees, interest is paid in arrears, compensating balance required is 10%. Effective cost of the bank loan: ___________________