1. A given project requires a $70,000 investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2 Year 3 Total $28,000 $17,500 $24,500 $70,000 Assuming a discount rate of 9%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below:

i = 9% i = 9% i = 9% n = 1 n = 2 n = 3 0.91743 0.84168 0.77218

$59,336.0

($10,664)

$51,100

$0

($6,300)

2.

A given project requires a $60,500 investment and is expected to generate end-of-period annual cash inflows of $26,000 for each of three years. Assuming a discount rate of 9%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below:

i = 9%	i = 9%	i = 9%
n = 1	n = 2	n = 3
0.9174	0.8417	0.7722

$65,814

$5,314

$6,155

($23,853)

$0