1. A project has estimated annual net cash flows of $6,250 for three years and is estimated to cost $30,000. Assume a minimum acceptable rate of return of 15%. Use the Present Value of an Annuity of $1 at Compound Interest table below.

Present Value of an Annuity of $1 at Compound Interest
Year	6%	10%	12%	15%	20%
1	0.943	0.909	0.893	0.870	0.833
2	1.833	1.736	1.690	1.626	1.528
3	2.673	2.487	2.402	2.283	2.106
4	3.465	3.170	3.037	2.855	2.589
5	4.212	3.791	3.605	3.353	2.991
6	4.917	4.355	4.111	3.785	3.326
7	5.582	4.868	4.564	4.160	3.605
8	6.210	5.335	4.968	4.487	3.837
9	6.802	5.759	5.328	4.772	4.031
10	7.360	6.145	5.650	5.019	4.192

Determine (a) the net present value of the project and (b) the present value index. If required, use the minus sign to indicate a negative net present value.

Net present value of the project (round to the nearest dollar)	$
Present value index (rounded to two decimal places)

2.

Diamond Boot Factory normally sells their specialty boots for $27 a pair. An offer to buy 120 boots for $22 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $11 and special stitching will add another $3 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organization. Enter the amount as a positive number.

Differential per pair of boots from accepting the special order is $.