1. A project has annual cash flows of $8,000 for the next 10 years and then $12,000 each year for the following 10 years. The IRR of the 20-year project is 11.00%. If the firm’s WACC is 10%, what is the project’s net present value (NPV)? Show work.
a. $6,788.44
b. $5,584.49
c. $5,977.45
d. $7,905,50
2. What is the bottom line of the current (last) budget approved by Congress (surplus or shortage) Please give me the approved budget dollar amount, the dollar amount spent and the dollar amount of the surplus.