1. Answer the following:

a. What is the PI of a project that costs $35,000 today and is expected to generate annual cash inflows of $10,000 for the next 7 years, followed by a final inflow of $15,000 in year 8. Cost of capital is 8.0%. Round to two decimal places.

b. What is the NPV of a project that costs $100,000 today and is expected to generate annual cash inflows of $15,000 for the following 10 years starting in one year. Cost of capital is 12%. Round to the nearest dollar.