Using NPV, should you invest in a project where the initial cash outflow is $31,800 and the cash inflow in the first year is $2,450 and "grows" at a rate of 2.9 percent thereafter? Assume cost of capital is 10.9 percent. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answer to 2 decimal places, e.g. 5,125.25.)

NPV of the project: = $

Should you invest in the project, yes or no? =

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Your truck has a market value of $60,800. You can sell it to your brother, who agreed to buy it now and pay $78,200 three years from now, or you can sell it to your cousin who agreed to pay you $67,500 at the end of the year. To whom should you sell the truck if your cost of capital is 9 percent? (Round answers to 2 decimal places, e.g. 25.25.)

Cash inflow, brother		$
Cash inflow, cousin		$

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Swifty Inc. now has the following two projects available:

Project		Initial CF		After-tax CF1		After-tax CF2		After-tax CF3
1		-11,696.56		5,100		5,900		9,200
2		-3,258.16		3,600		3,000		-

Assume that R_F = 4.7 percent, risk premium = 10.2 percent, and beta = 1.1. Use the EANPV approach to determine which project Swifty Inc. should choose if they are mutually exclusive. (Round cost of capital and final answers to 2 decimal places, e.g.17.35% or 2,513.25.)

PMT1		$
PMT2		$