1)You have an opportunity to invest $100,000 now in return for $80,300 in one year and $30,300 in two years. If your cost of capital is 9.2%, what is the NPV of this investment?

The NPV is $

2) A garage is comparing the cost of buying two different car hoists. Hoist A will cost $20,000, will require servicing of $1000 every two years, and last ten years. Hoist B will cost $15,000, require servicing of $800 per year, and last eight years. If the cost of capital is 7%, which is the better option, given that the firm has an ongoing requirement for a hoist?

A.Hoist A, since it has a greater equivalent annual annuity.

B.Hoist B, since it has a greater equivalent annual annuity.

C.Hoist A, since it has a greater present value (PV).

D.Hoist B, since it has a greater present value (PV).