Look at the cash flows for projects F and G given below. Cash Flows ($) Project F G NPV at 10% C4 C5 C6 C7 C8 CO C1 C2 C3 (13,500) 7,000 7,000 7,000 0 0 0 0 0 25.8 3,908 (13,500) 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 19.8 5,172 Project F Project G The cost of capital was assumed to be 10%. Assume that the forecasted cash flows for projects of this type are overstated by 5% on average. That is, the forecast for each cash flow from each project should be reduced by 5%. But a lazy financial manager, unwilling to take the time to argue with the projects' sponsors, instructs them to use a discount rate of 15%. a. What are the projects' true NPVs? (Do not round intermediate calculations. Round your answers to nearest dollar amount.) IRR (8) NPV at 10%

Look at the cash flows for projects F and G given below. The cost of capital was assumed to be 10%. Assume that the forecasted cash flows for projects of this type are overstated by 5% on average. That is, the forecast for each cash flow from each project should be reduced by 5%. But a lazy financial manager, unwilling to take the time to argue with the projects' sponsors, instructs them to use a discount rate of 15%. a. What are the projects' true NPVs? (Do not round intermediate calculations. Round your answers to nearest dollar amount.) b. What are the NPVs at the 15% discount rate? (Do not round intermediate calculations. Round your answers to nearest dollar amount.)