Make sure you answer the correct question! Solutions will be graded credit / no credit. If the answer is completely correct (within a rounding error of a percent) you will get two points of extra credit. Answers that are exactly correct (ie, accurate to two decimal places, e.g., $12.34, 12.34%) will get 0.2 extra points. If any part of your answer is incorrect, you will get no credit You are allowed to seek help and compare answers with other students. Extra Credit Problem Questions. 1. (Two Points) What is the NPV of the following project using a 14% opportunity cost of capital? Initial investment = $1,000 The time 1, 2, 3, and 4 cash flows - $0 At time 5, the project will produce one of three possible cash flows: $600 cash flow with a 25% probability $250 cash flow with a 55% probability $75 cash flow with a 30% probability Time 6 cash flows are 2.5% more than the time 5 cash flows. Cash flows continue to grow at a 2.5% rate in perpetuit