A farmer sows a certain crop. It costs $230,000 to buy the seed, prepare the ground, and sow the crop. In one years time it will cost $92,000 to harvest the crop. If the crop will be worth $360,000 at the end of the year, and the interest rate is 7%, what is the net present value (NPV) of this investment?

An auto-parts company is deciding whether to sponsor a racing team for a cost of $1 million. The sponsorship would last for four years and is expected to increase cash flows by $560,000 per year. If the discount rate is 6.7%, what will be the change in the value of the company if it chooses to go ahead with the sponsorship?