1. A project is expected to generate positive free cash flow of $4,000 per year for the next 5 years and $3,000 per year for the following 18 years. The required return is 10% and the project costs $28,000 to pursue. What is the project NPV?
2. Weymouth Company made a $210,000 investment in new machinery. Assuming the company's margin is 5%, what income will be earned if the investment generates $465,000 in additional sales?