1. A 4-year financial project is forecast to have a net cash inflow of $ 20, 000; $ 25, 000; $ 30, 000; and $ 50, 000 in the next 4 years. it will cost $ 75, 000 to implement the project, payable at the beginning of the project. If the required rate of return is 0.2, conduct a discount cash flow calculation to determine the NPV.

2. You have $30,000 in a margin account, 60% initial margin required. Suppose you buy 600 shares of IBM, for $50/share. Assume no dividends, and that your borrowing rate is 5.6%. What is your return if you did not borrow from your broker and if, in one year, IBM stock is selling for $35 per share?