1) In 2017, Leonardo da Vinci's painting Salvator Mundi sold for a record $452.5 million. In 1958, it sold for $136, equivalent in purchasing power to about $1,170 at 2017 prices. The painting was originally commissioned by King Louis XII of France in about 1500. The Wall Street Journal guesstimated that the king may have paid Leonardo the equivalent of $300,000 in 1519.

a. What was the annual rate of appreciation in the price of the painting between 1958 and 2017 adjusted for inflation? (Do not round intermediate calculations. Round percentage answer to 2 decimal places.)

Annual Rate = ? %

b. What was the annual estimated rate of appreciation in the price of the painting between 1519 and 2017 adjusted for inflation. (Do not round intermediate calculations. Round percentage answer to 2 decimal places.)

Annual Estimate Rate = ? %

2) Lofting Snodbury is considering investing in a new boring machine. It costs $419,000 and is expected to produce the following cash flows:

Year	1	2	3	4	5	6	7	8	9	10
Cash flow ($000s)	64	71	103	108	99	106	106	108	82	64

If the cost of capital is 10%, what is the machine's NPV? (Do not round intermediate calculations. Enter your answer in whole dollars rounded to 2 decimal places.)