Consider an investment project in which you invest $1,000 today in order to receive $350 at the end of each of the next 5 years. If the cost of capital is 9% per year, what is the NPV?
a. $248.97 b. $393.90 c. $361.38 d. $750.00 e. $1,750.00
2. Consider an investment project in which you invest $3,500 today in order to receive $525 at the end of each of the next 10 years. If the cost of capital is 12% per year, what is the IRR and should the project be accepted?
a. 10.23%, accept project
b. 10.23%, reject project
c. 8.14%, accept project
d. 8.14%, reject project
e. 13.38%, accept project
f. 13.28%, reject project