Question
1) (NPV with Normal Cash Flows) Compute the NPV for Project M if the appropriate cost of capital is 7 percent. (Negative amount should be
1) (NPV with Normal Cash Flows) Compute the NPV for Project M if the appropriate cost of capital is 7 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)
Project M | ||||||
Time | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow | -$1,700 | $490 | $620 | $660 | $740 | $240 |
2) (NPV with Non-normal Cash Flows) Compute the NPV for Project K if the appropriate cost of capital is 5 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)
Project K | ||||||
Time | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow | -$11,100 | $5,550 | $6,550 | $6,550 | $5,550 | -$11,100 |
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