2) Rust Industries runs a small manufacturing operation. For this fiscal year, it expects real net cash flows of $197,000. The company is an ongoing operation, and it expects its net cash flows to grow at 6 percent per year indefinitely. The discount rate for the project is 11 percent. All net cash flows are received at year-end. What is the present value of the net cash flows from the company's operations?

Group of answer choices

$823.50

$1,000.00

$58,823.53

$3,940,000

$1,880.35

3) Uptown Furniture wants to build a new retail store. The building cost is estimated at $1.6 million. The company had to spend $40,000 on feasibility research for the project. What amount should be used as the initial cash flow for this building project?

Group of answer choices

$2,385,000

$2,240,000

$1,600,000

$1,640,000

$2,270,000