1. A company has a diversified film services and it is currently investing in a hollywood series film. It's desired required return in 8% and the hurdle rate is 20%. The company has already spent $23823 on the hollywood film, and needs to spend $2379 on the makeup and clothing costs for all movies, including this one. Working capital for this movie is $8814. The cost of the producing this movie is $4832811.The movie generates a cash flow of $71992 in the first year and grows at 3.1% annually for 5 years. Calculate the NPV for the project.

2. Tesco Company is purchasing new equipments for $1 million that has a CCA rate of 20%. The equipment can reduce working capital immediately by $7237 (once only) and can be sold for $2838 in 12 years. When the project is over, there will still be asserts in the CCA class. The new equipment can save up to $57888 before taxes per year. The discount rate is 6% and the tax rate is 21%. Remember that CCA expense has the half-year rule. Calculate the NPV.