1.

1.

What is the net present value of a project with the following cash flows and a required return of 12 percent?

Year	Cash Flow
0	$35,600
1	12,450
2	22,530
3	2,600

$4,450.45

-$4,672.52

-$4,450.45

$4,672.52

-$6,596.89

2. . What is the NPV of the following set of cash flows at a discount rate of zero percent? What if the discount rate is 15 percent?

year Cash Flow A Cash Flow B

0	-57,000	-61,000
1	9,000	16,500
2	14,800	26,300
3	18,900	15,600
4	19,600	4,900

-$41,700; -$8,665.07

-$41,700; $1,208.19

$0; $1,208.19

$2,500; $1,208.19

$2,500; -$8,665.07