The discount rate is $10\%.$ Project $1$ has the following cash flows. Cash outflow today is $340,$ followed by inflows of

$105$ at the end of year $1,110$ at the end of year $2,115$ at the end of year $3,110$ at the end of year $4,$ and $105$ at

the end of year $5.$ The net present value of project $1$ is closest to$?$

Select one:

a$.73\mathrm{.}10$

b$.79\mathrm{.}15$

C$.65\mathrm{.}12$

d$.68\mathrm{.}20$

The discount rate is $10\%.$ Project $3$ has the following cash flows. Cash outflow today is $40,000$ followed by inflows

of $10,000$ at the end of year $1,20,000$ at the end of year $2,30,000$ at the end of year $3,$ and $40,000$ at the end

of year $4.$ Straight$-$line depreciation method is used. Assume the change in net working capital between years $1$

and $2$ is $1,000.$ The project lasts $4$ years. Project earnings in year $2$ is closest to$?$

Select one:

a$.10,000$

b$.11,000$

C$.11,450$

d$.10,900$