1. XYZ, Inc. is thinking of development a new product. Development will take two years and the cost is $100,000 per year (year 1 to year 2). Once in production. The new project is expected to generate cash flows for the company $200,000 per year for 3 years (year 3 to year 5). Assume the cost of capital is 10%. What is NPV of the project?

2. XYZ, Inc. is thinking of development a new product. Development will take two years and the cost is $100,000 per year (year 1 to year 2). Once in production. The new project is expected to generate cash flows for the company $200,000 per year for 3 years (year 3 to year 5). Assume the cost of capital is 10%. What is NPV of the project? No excel for both questions