Question: 1.A local bookstore is considering adding a coffee shop to their store. Building the coffee shop will cost $226,327.00 today. The bookstore is going to

1.A local bookstore is considering adding a coffee shop to their store. Building the coffee shop will cost $226,327.00 today. The bookstore is going to try this project for five years. The bookstore wants a 10.00% return on their investment. What yearly cash flow must this project generate to break-even?

2.Consider the following project:

Year 0 1 2 3
Cash flow -$21.00 $8.00 $9.00 $16.00

What is the NPV of this project if the cost of capital is 12.00%?

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