A project requires an initial investment of $70,000. The project is expected to produce $12,000 profit in the first five years and $9,000 profit in the following five years (i.e., years 6-10). What are the net present value (NPV) and the profitability index (PI) of this project assuming a discount rate of 7.7%?

	NPV = $3,290 and PI = 1.0470
	NPV = $4,514 and PI = 1.0645
	NPV = $3,290 and PI = 1.0832
	NPV = $4,514 and PI = 1.0951
	None of the above.

It is widely reported on the Internet that the island of Manhattan was purchased in the 17th century for a price of 60 Dutch guildersroughly equal to $24 (US). Suppose that instead of purchasing Manhattan, the Dutch colonists had invested their $24 (US) in Europe at an average rate of 4.5% per year. If the $24 USD had been invested for exactly 385 years earning simple interest (i.e., without compounding), approximately how much would their investment now be worth?

	$440.00
	$549,519,444.00
	$9,240.00
	$24,736,768.00
	None of the above