Consider an investment project in which you invest $1,000 today in order to receive $350 at the end of each of the next 5 years. If the cost of capital is 9% per year, what is the NPV?

a.$248.97 b.$393.90 c.$361.38 d.$750.00 e.$1,750.00

2. Consider an investment project in which you invest $3,500 today in order to receive $525 at the end of each of the next 10 years. If the cost of capital is 12% per year, what is the IRR and should the project be accepted?

a.

10.23%, accept project

b.

10.23%, reject project

c.

8.14%, accept project

d.

8.14%, reject project

e.

13.38%, accept project

f.

13.28%, reject project