1. Suppose a company has proposed a new 4-year project. The project has an initial quality of $29,000 and has expected cash outlay of $29,000 and has expected cash flows of $8,000 in year 1, $8.000 n year 2, $12,000 in year 3, and $13,000 in year 4. The required rate of return is 17% for projects at this company. What is the net present value for this project? (Assume to the nearest dollar)
2. Suppose a company has two mutually exclusive projects both of which are three years in length project A has an initial quality of $9,000 and has expected cash flows of $2,000 in year 1,54,000 in year 2, and $5,000 in year 3. Project B has an initial quality of $9,000 and has expected cash flows of $3,000 in year 1,$4,000 in year 2, and $4,000 in year 3. The required rate of return is 15% for projects at this company. What is the net present value for the best project? (Answer to the nearest dollar.)