13. Under Armour is considering a new inventory system that will cost $550,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $225,000 in year two, $100,000 in year three, and $70,000 in year four. Under Armour's required rate of return is 10%. What is the net present value of this proposed new project? a) $76,910 b) $74,500 c) $462,645 d) $17,750 14. Nike's new project requires an initial outlay of $300,000 and has a profitability index of 1.5. The project is expected to generate equal annual cash flows over the next ten years. The required return for this project is 10%. What is the net present value of Nike's proposed new project? a) $450,000 b) $288,000 c) $160,000 d) $150,000