1. A local store charges 1.5% each month on the unpaid balance for its charge account. What nominal annual interest rate is being charged? What is the effective interest rate?
2. Project L costs $35,000, its expected cash inflows are $11,000 per year for 12 years, and its WACC is 12%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.