QUESTION 8

1. Table 4

   Project	Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
   	Cash Flow	Cash Flow	Cash Flow	Cash Flow	Cash Flow	Cash Flow
   A	-12500	12000	5000	5000	5000	5000
   B	-17500	7000	7000	7000	7000	7000
   C	-18000	19000	1000	1000	1000	1000

   " Consider the cash flow of the three projects depicted in Table 4. The cost of capital is 15%. The net present value (NPV) of project A is ________. Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer."

10 points

QUESTION 9

1. "Consider the cash flow of the three projects depicted in Table 4. The cost of capital is 15%. If an investor decided to take projects with a payback period of 1 year or less, which of these projects would he take? --- "

   		Investment A.
   		Investment B.
   		Investment C.
   		none of these investments.