NPV

An investment costs $$2,000$ today, and provides positive cash flows of $$300$ at the end of year $1$ and $$2,500$ at the end of year $2.$

a$.$ What is its net present value if interest rate is $5\%$ annually?

b$.$ What is the rate that makes net present value of this investment go to zero?

c$.$ What is the future value of this stream of cash flows at time $=2?$