1. A proposed project has an initial cost of $70,500 and is expected to produce cash inflows of $31,200, $50,100, and $42,500 over the next 3 years, respectively. What is the net present value of this project at a discount rate of 15.6 percent?
$21,491.76
$19,598.06
$21,884.74
$22,768.05
2. What is the present value of a $400 payment in one year when the discount rate is 5 percent?