1. Consider the following cash flow data for two competing investment projects:
n A B
0 $-1,250,000 $-1,750,000
1 $825,000 $825,000
2 $825,000 $1,250,000
At i=10%, which of the two projects would be a better choice?
2. Consider the following cash flow for a given project:
n Cash Flow
0 $-3,000
1 $600
2 $700
3 $800
4 $900
5 $1000												3. Consider the following investment projects, all with a three-year investment life:
6 $1100												n A B C D
(a) Find the conventional payback period for the project.												0 $-1,000 $-2,000 -$1,000 $-6,500
(b) Find the discounted-payback period for the project, assuming i = 8%.												1 $0 $800 -$1,500 $3,000
												2 $0 $1,100 $1,000 $2,000
												3 $4,000 $2,000 $3,500 $3,000
												a. Compute the net present worth of each project at i=8%.
												b. Compute the net future worth of each project at i=8%.

Compute the net present worth at i = 12% for your assigned group's business startup