Q1. A company is in the process of constructing a new plant at a cost of $18 million. It expects the project to generate cash flows of $8 million, $5 million, and $11 million over the next three years. The cost of capital is 14.0 percent p.a. What is the net present value of this project? (in millions to three decimals) Select one: a. $0.290 b. $36.290 c. $-1.957 d. $0.828

Q2.

A company is considering an investment that will cost $979,000 and have a useful life of 6 years. The cash flows from the project are expected to be $500,000 per year in the first two years then $113,000 per year for the last 4 years. If the appropriate discount rate is 16.1 percent per annum, what is the NPV of this investment (to the nearest dollar)?

Select one:

a. $56717

b. $2014717

c. $83973

d. $138169