1) A four-year financial project is forecast to have net cash inflows of $20,000; $25,000; $30,000; and $50,000 in the next four years. It will cost $75,000 to implement the project, payable at the beginning of the project. If the required rate of return is 0.2, conduct a discounted cash flow calculation to determine the NPV.

2) What would happen to the NPV of the above project if the inflation rate were expected to be 4.5 percent in each of the next four years?