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Compute the NPV for Project K if the appropriate cost of capital is 7 percent. ( Negative amount should be indicated by a minus sign.

Compute the NPV for Project K if the appropriate cost of capital is 7 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)

Project K
Time: 0 1 2 3 4 5
Cash flow $10,100 $5,050 $6,050 $6,050 $5,050 $10,100

NPV $

Should the project be accepted or rejected?
Accepted

Rejected

pt2

Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent and the maximum allowable payback is 3 years.

Time: 0 1 2 3 4 5
Cash flow: -2,800 675 550 850 750 700

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