1.This is a two-part question, each part worth 5 points.

First Part: A magazine publisher wants to launch a new magazine geared to college students. The project's initial investment is $68. The project's cash flows that come in at the end of each year are $24for5consecutive years beginning one year from today. What is the project's NPV if the required rate of return is19%?

Answer #1: $___________

Place your answer in dollars and cents without the use of a dollar sign or comma. If applicable, a negative answer should have a "minus" sign in front of the number. Work your analysis out to at least 4 decimal places of accuracy.

Second Part

Based upon the NPV decision rule, should the company accept or reject the project?

Answer #2:(Accept or Reject)_____________

Place your aswer as the word "accept" or the word "reject".

2.A research division of a large consumer electronics company has developed a new type of mp3 player. The project will require an immediate cash outflow of $1,665,321. The new project is expected to produce cash flows of $500,000 per year for 4 consecutive years beginning at the end of year one. What is this projects internal rate of return?

________%

Place your answer in percentage form without the percent sign. For example, if your answer is four point seven two percent, you should enter your answer as 4.72 and not as .0472 or as 4.72%.