1.

Duffer Resorts is redoing its golf course at a cost of $2,744,320. It expects to generate cash

flows of $1,223,445, $2,007,812, and $3,147,890 over the next three years. If the appropriate

discount rate for the firm is 13 percent, what is the NPV of this project? (Do not round

intermediate computations. Round final answer to nearest dollar.)

2.

Mallory Gallery is adding to its existing buildings at a cost of $2 million. The gallery expects to

bring in additional cash flows of $520,000, $700,000, and $1,000,000 over the next three years.

Given a required rate of return of 10 percent, what is the NPV of this project? (Do not round

intermediate computations. Round final answer to nearest dollar.)