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1. What is the Net Present Value (NPV) of the following set of cash flows if the cost of capital is 0.12? Co = -120

1. What is the Net Present Value (NPV) of the following set of cash flows if the cost of capital is 0.12? Co = -120 C01 = 110 C02 = 340 C03 = 80 ?

2. Consider a speculator in a long oil futures contract that controls 1000 barrels of oil. If the speculator signs 12 long positions when the price of oil is 67.7, and the price of oil changes to 36.6, how much money has the speculator made or lost?

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