In its first two years, a new entrepreneurial start-up makes a loss of $20K in year 1 but gains $30K in year 2. At a discount rate of 10%, what is the company's cash flow value at the end of year 2? (in $1,000)

A)$0

B)$1

C)$5

D)$8

E)$10

F)$12

2) What is the net present value in year 0 in the prior problem? (in $1,000)

A) $6.01

B)$6.61

C)$7.27

D)$8.00

E)$8.80

D) none of the above