Cash flows for projects F and G are given below.

	Cash Flows, ($)
Project	C0				C1				C2				C3				C4				C5
F			9,000			+	6,000			+	5,000			+	4,000				0				0
G			9,000			+	1,800			+	1,800			+	1,800			+	1,800			+	1,800

The cost of capital for projects of this type is 10%. Assume that the forecasted cash flows are overstated and should be 8% lower than those provided by the project analyst. But a lazy financial manager, unwilling to take the time to argue with the projects sponsors, instructs them to use a discount rate of 18%. Assume that G is a perpetuity.

a.

What are the projects true NPVs? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

NPV

Project F

$

Project G

$

b.

What are the NPVs at the 18% discount rate? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

	NPV
Project F	$
Project G	$