1.You are considering a decision of whether to produce a new product line. You would need to acquire licensing rights that cost $1 million. You would sign a contract in 2017, pay the $1 million in 2018, and amortize the licensing cost during the years of actual production (2019 through 2025). When doing NPV analysis, in what years (if any) should you count the licensing cost?

a. 2017 only

b. 2018 only

c. 2019 through 2025

d. All of the years (2017-2025)

e. None of the years

2.Your company is considering the purchase of a machine. It will cost $289119 to purchase and install this year. Starting next year the machine will generate $133014 of operating cash flow each year for the next three years. At the end of the third year, you plan to sell the machine for 96482. Calculate the net present value index (NPVI) for the machine. the discount rate is 15%. Round the NPVI to three significant digits.