1.

Craig Titus just invested $179,840 in a 5-year bodybuilding project that will generate cash inflows of $38,900 and $78,390 during its first two years, respectively. According to Craig Titus, the project will generate inflows of $63,090, $61,140, and $44,340, during its last three years, respectively. If Craig Titus cost of capital is 8.9%, the NPV of his bodybuilding project is:

Multiple Choice

• $9,000.45

• $43,255.70

• $9,900.49

• $16,348.78

• $12,083.03

2.

Three-year MACRS Table:

Year	Depreciation Percentage
1	33.3%
2	44.45%
3	14.81%
4	7.41%

Using the above table, what is the amount of depreciation in Year 2 for a sneaker boxing device that Nike just purchased for $2,650,000?

Multiple Choice

• $392,465

• $1,177,925

• $883,333

• $196,365

• $883,245