A firm is considering a project that requires an initial investment of $420,000. The life of this project is five years. Cash flows for each year are estimated as follows: Year 1 Year 2 Year 3 Year 4 Year 5 $180,000 $220,000 $160,000 -$20,000 -$80,000 If the cost of capital of this project is 8%, what is the net present value of this project? $40,000.00 -$6,345.27 -$106,931.73 -$6,852.89 $27,223.33 A firm is considering a project that requires an initial investment of $250,000. The life of this project is five years. Cash flows for each year are estimated as follows: Year 1 Year 2 Year 3 Year 4 Year 5 $80,000 $120,000 $160,000 $40,000 -590,000 The cost of capital of this project is 8%. Calculate the equivalent annual annuity. $15,027.39 $10,227.39 $5,539.24 $5,128.93 -$9,772.61