Cash flows for projects F and G are given below.

Cash Flows ($)ProjectC₀C₁C₂C₃C₄C₅Etc.F-10,200+7,200+6,200+5,20000...G-10,200+2,040+2,040+2,040+2,040+2,040...

The cost of capital is assumed to be 12%. Assume the forecasted cash flows for projects of this are typically overstated. That is, each $1 in forecasted cash flows for periods C1 and later should be reduced by 6 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.)

NPVProject 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.)

NPVProject F$Project G$References

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