The table below provides the estimated end-of-year net cash flows that would be received from alternative projects Red and Blue for an investment of $200,000.

(a) Find the NPV of each project if the cost of capital is 5.5%.

(b) In part (a), which project is better?

(c) Find the NPV of each project if the cost of capital is 7.5%.

(d) In part (c), which project is better?

NPV of Projects Red and Blue (in that order),

separated with a comma.

Answers correct to 2 decimals.

\begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{1}{|l|}{} & Year 1 & Year 2 & Year 3 & Year 4 \\ \hline Project Red & $90,000 & $70,000 & $60,000 & $40,000 \\ \hline Project Blue & $40,000 & $60,000 & $70,000 & $101,000 \\ \hline \end{tabular}