Part 1: You and two of your best friends have recently come into some extra cash and would like to invest that cash in a business to help all of you pay off your student loans. Project Salsa is a food truck restaurant and project Lyriks is a high-tech music streaming service. The assumed required rate of return (discount rate) is 10%. Below are the estimated cash flows from each project:

Year (Nper) Project Salsa Project Lyriks

0 $(3,000) $(3,000)

1 1,500 800

2 1,200 900

3 900 1,600

4 600 2,500

1. Find the NPV of each project and state which project is the better option. 2. Assume you will sell each business at the end of 4 years and therefore add $10,000 at the end of project Salsa and $30,000 at the end of project Lyriks. Calculate the NPV and state which project is the better option.

Part 2: Using the exchange rate $.90 peso for $1.00 U.S. dollar for Salsa which will be established in Mexico and using the exchange rate of $.10 for $1.00 U.S. dollar for Lyriks assuming it will be established in Jamaica, convert the cash flows for each year including the salvage amount and recalculate the NPV. Which project is the best option? (Chapter 1 page 15)

Part 3: Research a current news article about recent international trade agreements that might significantly impact both countrys balance of payments. Write at least 250 words. Cite your sources using APA format. Be prepared to present your findings in class