A. An investment project earns net cash flows of $4,500 per year for seven years. The initial investment outlay is $20,000 and the cost of capital is 5.5%. What is the net present value of the project?

B. A project earns the following cash flows: t=1: $450; t=2: $500; t=3: $700, t=4: $700, t=5: $700. The initial outlay is $2,000. Calculate the net present value if the cost of capital is 7.0%.

C. Calculate the internal rate of return for the previous problem.