1.

Time	net cash flows	present value (use npv formula here)	cost of capital
0			5%
1	$1,000
2	$2,000
3	$3,000
4	$4,000
5	$5,000
6	$6,000
7	$7,000
8	$8,000
9	$9,000
10	$10,000

The present vaue of this stream of cash flows is between $39,370 and $39,380.

True

False

2.

Time	net cash flows	present value (use npv formula here)	cost of capital
0			10%
1	$500
2	$600
3	$700
4	$800
5	$900
6	$1,000
7	$1,100
8	$1,200
9	$1,300
10	$1,400

The present vaue of this stream of cash flows is between $6,000 and $6,030.

True

False

3.

Time	net cash flows	present value (use npv formula here)	cost of capital
0			10%
1	$1,000
2	$2,000
3	$3,000
4	$4,000
5	$5,000
6	$6,000
7	$7,000
8	$8,000
9	$9,000
10	$10,000

The present vaue of this stream of cash flows is between $29,030 and $29,040.

True

False