Problem 1: Your company is considering a project with an initial cash outlay of $500,000. The discount rate is 10%.

Projected cash inflows for the next 5 years are: Year 1: $100,000; Year 2: $200,000;

Year 3: $300,000; Year 4: $400,000; Year

5: $500,000. Should you invest in this project? Why? Show work

Problem 2: Your company is considering a project with an initial cash outlay of $600,000. The discount rate is 10%.

Projected cash inflows are $200,000 for each of the next 5 years. Should you invest in this project? Why? show work.