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1. Project K costs $51,275, its expected net cash inflows are $13,000 per year for 7 years, and it WACC is 11% What is the project's NPV?

a) 9,983.55

b) 657.90

c) 31,997.75

d) 77,941.95

2. Suppose you invest $2500 each year in a savings account that earns 11.5% per year. How much will be in the account in 7 years?

A. 11,592.59

B. 5,356. 29

C. 1,166.85

D. 24,837. 30

E. None of these

Financial Management, Finance

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