Question: please help with both 10. Using the cash flow values in the table below, calculate the Net Present Value (NPV). Assume a discount rate of

please help with both

10.

Using the cash flow values in the table below, calculate the Net Present Value (NPV).

Assume a discount rate of 7.6%.

Year Cash Flow
0 -$39,000
1 5,559
2 13,000
3 9,000
4 11,000
5 8,376

Do not round intermediate values. Enter your answer as a number with 2 decimal places of precision (i.e. 1.23). Do not enter dollar signs or commas. Precede negative NPVs with a minus sign.

24.

The relative risk of a proposed project is best accounted for by which of the following procedures?

a.

Adjusting the discount rate (WACC) upward if the project is has below-average risk.

b.

Picking a risk factor equal to the average discount rate.

c.

Reducing the NPV by 10% for risky projects.

d.

Adjusting the discount rate (WACC) upward if the project is has above-average risk.

e.

Ignoring risk because project risk cannot be measured accurately.

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