You are considering a project that has an initial cost of $10000 and will earn 25,000 at the end of the first year. The next year, you will have to spend another $7,000 in the project. With a cost of capital of 15%, what is this project's net present value (npv)?
a) 6446.1
b) 7202.3
c) 7958.4
d) 8714.6
e) 9470.7
2. You are considering a project that requires an initial investment of $50,000. It's expected cash flows are $10,000 per year for the next 6 years. The cost of capital is 10%. What is this project's modified internal rate of return?
a) 7.5
b) 8.6
c) 9.6
d) 9.9
e) 10.5