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QUESTION 1 What is the NPV of a 2-year project that requires an immediate investment of $33,000 and produces a cash flow of $16,000 at
QUESTION 1 What is the NPV of a 2-year project that requires an immediate investment of $33,000 and produces a cash flow of $16,000 at t = 1 and of $26,000 at t = 2? Assume a discount rate of 14% and round your answer to the nearest dollar. Thus, if you believe the NPV is -$2,347.52 write your answer as -2348 (Acceptable error = $5.00) QUESTION 2 What is the PV of a series of 60 equal monthly payments of $390 if the first payment occurs immediately. Assume a discount rate of 15% APR compounded monthly. Round your answer to the nearest dollar. Thus, if you believe the PV is $2,347.52 write your answer as 2348 (Acceptable error = $10.00)
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