1)At current prices and a 10 percent cost of capital, a project's NPV is $100,000. By what minimum amount must the initial cost of the project decrease (revenues will be unchanged) before you would prefer to wait two years before investing?

$26,000

$21,000

$27,690

$29,380

2)What is the approximate standard deviation of returns for a one-year project that is equally likely to return 100 percent as it is to provide a 50 percent loss?

0 percent

100 percent

78 percent

63 percent