A) at 10%

Project F:

Project G:

B) at 17%

Project F:

Project G:

Look at the cash flows for projects Fand G given below. Cash Flows($) NPV IRR at Project co C1 C2 C3 C4 C5 Cg (%) 10% F (10,500) 6,200 6,200 6,200 0 0 35.1 4,918 (10,500) 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 25.5 6,572 The cost of capital was assumed to be 10%. Assume that the forecasted cash flows for projects of this type are overstated by 7% on average. That is, the forecast for each cash flow from each project should be reduced by 7%. But a lazy financial manager, unwilling to take the time to argue with the projects' sponsors, instructs them to use a discount rate of 17%. a. What are the projects' true NPVS? (Do not round intermediate calculations. Round your answers to nearest dollar amount.) NPV at 10% Project F Project G b. What are the NPVs at the 17% discount rate? (Do not round intermediate calculations. Round your answers to nearest dollar amount.) NPV at 17% Project F Project G