Firm W has the opportunity to invest $150,000 in a new venture. The projected cash flows from the venture are as follows.

	Year 0		Year 1		Year 2		Year 3
Initial investment	$	(150,000)
After-tax cash flow			$	5,000	$	8,000	$	10,000
Return of investment								150,000
Net cash flow	$	(150,000)	$	5,000	$	8,000	$	160,000

a-1. Complete the below table to calculate NPV. Assume Firm W uses a 6 percent discount rate.

Complete the below table to calculate NPV. Assume Firm W uses a 6 percent discount rate. (Cash outflows and negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.)

	Year 0	Year 1	Year 2	Year 3
Net cash flow
Discount factor (6%)
Present value
NPV

b-1. Complete the below table to calculate NPV. Assume Firm W uses a 3 percent discount rate.

Complete the below table to calculate NPV. Assume Firm W uses a 3 percent discount rate. (Cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.)

	Year 0	Year 1	Year 2	Year 3
Net cash flow
Discount factor (3%)
Present value
NPV