1. Biannca plans to open a do-it-yourself dog grooming facility. Equipment will cost $160,000. Biannca expects the after-tax cash inflows to be $40,000 annually for seven years, after which the equipment will be scrapped, and she will retire to the beaches of Jamaica. Assume the required return is 11.192%. What is the project's NPV?

2.

When relying on the IRR method for project analysis ranking conflicts can occur between IRR results and NPV results. Specifically, these situations can arise when

-A project has more than one NPV.

-Projects are mutually exclusive.

-Projects are independent of one another.

-The profitability index is greater than one.

-The first cash flow is negative and the remaining cash flows are positive.