1. Determine NPV with Uneven Cash Flows. Suppose the required rate of return is 11.25 percent for Project A. Also, assume that Project A has an initial cost of $38,900 and future cash inflows of $11,400, $16,900, and $26,200 for Years 1 to 3, respectively. Determine the NPV of Project A.
2. Determine NPV for Uneven Cash Flows. The required rate of return is 11.85 percent for Project B. Project B has an initial cost of $41,300 and future cash inflows of $20,000 per year for the next three years.
3. NPV for Compensation. You are considering a job that offers a starting bonus of $5,000 to be paid immediately and an annual salary of $62,000, $65,000, and $70,000 for the next three years, respectively. What is this offer worth today at a discount rate of 6 percent?