You are considering a project that has an initial cost of $10000 and will earn 25,000 at the end of the first year. The next year, you will have to spend another $7,000 in the project. With a cost of capital of 15%, what is this project's net present value (npv)?

a) 6446.1

b) 7202.3

c) 7958.4

d) 8714.6

e) 9470.7

2. You are considering a project that requires an initial investment of $50,000. It's expected cash flows are $10,000 per year for the next 6 years. The cost of capital is 10%. What is this project's modified internal rate of return?

a) 7.5

b) 8.6

c) 9.6

d) 9.9

e) 10.5