The cost of capital is assumed to be 10%. Assume the forecasted cash flows for projects of this type are typically overstated. That is, each $1 in forecasted cash flows for periods C1 and later should be reduced by 8 cents based on prior experience. But a lazy financial manager, unwilling to take the time to either argue with the project's sponsors or to adjust the cash flows, instructs the managers to use a discount rate of 18%.

a. What are the projects true NPVs? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

	NPV
Project F	$
Project G	$

b. What are the NPVs at the 18% discount rate? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

	NPV
Project F	$
Project G	$

Cash flows for projects F and G are given below. Cash Flows ($) Go 10,300 10,300 Project 1 2 Etc +7,300 +6,300 +5,300 +2,060+2,060 +2,060 +2,060 +2,060