1. First Part: A magazine publisher wants to launch a new magazine geared to college students. The project's initial investment is $66. The project's cash flows that come in at the end of each year are $24 for 6 consecutive years beginning one year from today. What is the project's NPV if the required rate of return is 13%? Answer #1: $ Place your answer in dollars and cents without the use of a dollar sign or comma. If applicable, a negative answer should have a "minus" sign in front of the number. Work your analysis out to at least 4 decimal places of accuracy. Second Part Based upon the NPV decision rule, should the company accept or reject the project? Answer #2:(Accept or Reject) Place your aswer as the word "accept" or the word "reject".

2. A research division of a large consumer electronics company has developed a new type of mp3 player. The project will require an immediate cash outflow of $1,665,321. The new project is expected to produce cash flows of $500,000 per year for 4 consecutive years beginning at the end of year one. What is this projects internal rate of return?

3. A manufacturer of backpacks plans to introduce a new line. Equipment and production costs will be incurred immediately and will total $7,272,727. The company expects to earn a profit of $20 per backpack, and sales are estimated to be 100,000 in the first year (assume that the cash flow comes in at the end of the year). Sales are then expected to grow by 10% per year in each of the next three years (in year 2, year 3, and year 4) but the price is expected to remain at $20 throughout. What is the internal rate of return of this project? % Place your answer in percentage form with no percentage sign. That is, if your answer is four point eight eight percent, you should enter that value as 4.88. Should the company produce the backpacks if the required rate of return is 12%? (Yes or No)