Cash flows for projects F and G are given below.

Cash Flows ($)

Project

C0

C1

C2

C3

C4

C5

Etc.

F

11,000

+8,000

+7,000

+6,000

0

0

...

G

11,000

+2,200

+2,200

+2,200

+2,200

+2,200

...

The cost of capital is assumed to be 10%. Assume the forecasted cash flows for projects of this type are typically overstated. That is, each $1 in forecasted cash flows for periods C1 and later should be reduced by 8 cents based on prior experience. But a lazy financial manager, unwilling to take the time to either argue with the project's sponsors or to adjust the cash flows, instructs the managers to use a discount rate of 18%.

a. What are the projects true NPVs? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

	NPV
Project F	$
Project G	$

b.What are the NPVs at the 18% discount rate? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

	NPV
Project F	$
Project G	$