Two projects cost $100,000 to start and produce cash flows over the next 5 years according to this schedule. The cost of capital is 6.5%.

Year Project 1 Project 2

1 30,000 25,000

2 35,000 25,000

3 40,000 25,000

4 30,000 15,000

5 25,000 15,000 What is the NPV of Project 1?

		a) $11,180.05
		b) $33,707.77
		c) $133,707.77
		d) -$11,180.05