1. Armor Inc. is considering Project B. Cash flows for Project B are as follows: An initial outlay or cost of $-15,000 today. An additional outlay or cost of -5,000 will occur at the beginning of Year 2. Positive cash flows are expected to start at the end of Year 2 and continue until the end of Year 6. The positive cash flows are estimated as follows:

Year 2	12,500
Year 3	10,000
Year 4	10,000
Year 5	12,500
Year 6	8,000

1. Are the net cash flows normal or nonnormal cash flows? ________________Explain your answer.
2. What is the NPV of Project B if wacc = 8%? __________
3. Will you accept or reject Project B? __________Explain.
4. D.If Project A (in Problem 1) and Project B (in Problem 2) are mutually exclusive, which project(s) would you accept based on the NPV method and a wacc of 8%? _________________Explain your answer(s).