1. Fairfax Paint is evaluating a project that would cost 7,427 dollars today. The project is expected to have the following other cash flows: 2,469 dollars in 1 year, 2,337 dollars in 2 years, and 4,097 dollars in 4 years. The internal rate of return for the project is 7.27 percent and the cost of capital for the project is 8 percent. What is the net present value of the project?
2. Gomi Waste Disposal is evaluating a project that would last for 4 years. The project’s internal rate of return is 8.38 percent; its NPV is 6,670 dollars; and the expected cash flows are -94,800 dollars at time 0, 18,300 dollars in 1 year, 76,500 dollars in 2 years, and X in 4 years. What is X?