3. Warranty Inc. is considering a project that has the following cash flow and WACC data.

What is the project's NPV? Note that a project's expected NPV can be negative, in which case it

will be rejected.

WACC:10%

Year 0 1 2 3

Cash flows -$950 $500 $400 $300

4. Berry Company is considering a project that has the following cash flow and WACC

data. What is the project's NPV? Note that a project's expected NPV can be negative, in which

case it will be rejected.

WACC:8%

Year 0 1 2 3 4 5

Cash flows -$1,000 $400 $390 $380 $370 $360