1. For a project with an initial investment of $40,000 and cash inflows of $11,000 a year for five years, calculate NPV given a required return of 10%/year.
a. $1,699
b. $1,103
c. $655
d. $888
e. -$1,205
2. You are considering a project that costs $6000 and has expected cash flows of $2200, $2420, and $2662.00 over the next three years. If the appropriate discount rate for the project's cash flows is 10%, what is the net present value of this project?
a. $0.00
b. $64.10
c. $19.79
d. $0.71
e. The NPV is negative