1. Consider the following series of investment projects available in your company:

year A B C D 0 -$2,000 -$4,000 -$3,000 -$9,000 1 $400 $1,000 -$2,000 $2,000 2 $500 $1,500 $7,000 $2,000 3 $600 $2,000 -$1,000 $8,000 4 $700 $3,000 $1,000 $1,000

If the MARR used by the financial planning department of your company is equal to 10% per year:

a) Determine the Net Present Value of the available projects

b) Determine the Internal Rate of Return of the available projects

c) What projects should be accepted by the company if the projects are independent and why?

2. A company is concerned about the continued increase in the cost of fuel for its fleet of home delivery units. The cost of fuel is expected to increase by 3% per year over the cost base of $ 5.40 per gallon for years to come. If the logistics manager of the company considers that a unit accumulates an average of 150,000 miles in a year with a fuel efficiency of 10 miles per gallon, what is the Net Present Value of the cost of fuel per unit of transport in the next 7 years, if the company establishes a rate of 12% per year?