You are evaluating a proposed project for your company. The project is expected to generate the following end-of-year cash flows:

0------- -$3000

1--------- $300

2----------$500

3---------- $600

4---------- $600

5----------- $800

6----------- $800

7------------$800

8----------- $200

You have been told you should evaluate this project with an interest rate of 9%. What is the project's NPV?

Your group leader has now told you that the risk of the project was understated before. As a result, she tells you to recalculate the project's NPV with an 11% interest rate. What is the new NPV?

You have been told you should evaluate this project with an interest rate of 9%. What is the project's NPV?

Your group leader has now told you that the risk of the project was understated before. As a result, she tells you to recalculate the project's NPV with an 11% interest rate. What is the new NPV?