1. Assume that a proposed investment project requires an initial investment of $10 million and the expected cash flow is $2 million each year for the next five years. Starting from year 6, the project will have a perpetual net operating cash flow of $1.2 million each year. The project's cost of capital is 15%. What is the project's NPV?

2. If you were to start a business today, what business form would you choose if considering a corporation, partnership, LLC, or Sole Proprietorship? Provide at least three reasons for your selection.