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1. Biogen, Inc. has a cost of capital of 9%, and it has a project with the following cash flows. What is the NPV of

1. Biogen, Inc. has a cost of capital of 9%, and it has a project with the following cash flows. What is the NPV of this project? Year Net Cash Flow 0 -100,000 1 -20,000 2 20,000 3 100,000 4 150,000 5 175,000 2. Your organization has been asked to invest in a continuing care retirement center. Your investment will be $600,000 per year for the next five years. After five years, cash flows will be $400,000 per year for the next 15 years. If your discount rate is 10 percent: a) What is the present value of the investment? b) What is the present value of the cash flows? c) What is the profitability index

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