1. Your division is considering two investment projects, each of which requires an up-front expenditure of $15 million. You estimate that the investments will produce the following net cash flows: year 1 - project A - $5,000,000; project B - $20,000,000 year 2 - project A - $10,000,000; project B - $10,000,000 year 3 - project A - $20,000,000; project B - $6,000,000 What are the two project's net present values, assuming the cost of capital is 10%?

2. CCS Enterprises is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected. Year 0 - cash flows = ($1,000) Year 1 - cash flows = $450 Year 2 - cash flows = $470 Year 3 - cash flows = $490