1. Compute the NPV for Project K if the appropriate cost of capital is 5 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Project K Time: 0 1 2 3 4 5

Cash flow $11,100 $5,550 $6,550 $6,550 $5,550 $11,100 NPV $ ___?

Should the project be accepted or rejected? Accepted Rejected

2.Compute the payback statistic for Project B if the appropriate cost of capital is 10 percent and the maximum allowable payback period is three years. (Round your answer to 2 decimal places. If the project never pays back, then enter a "0" (zero).)

Project B
Time:	0	1	2	3	4	5
Cash flow	$12,900	$3,540	$4,560	$1,900	$0	$1,380

Payback

years

Should the project be accepted or rejected?

	Accepted
	Rejected