Question 38 (0.5 points) What is the net present value of a project that has an initial cash outflow of $34,900 and the following cash inflows: Year 1 $12,500, Year 2 $19,700, Year 3 $0, Year 4 $10,400? The required return is 15.35 percent.

Question 38 options: -$3,383.25 -$2,784.62 -$2,481.53 $52,311.08 $66,416.75

Question 40 (0.5 points)

Holt Bolts, Inc. is considering building a new factory. The company bought vacant land in the city 25 years ago for $550,000 on which the new factory could be built. However, a residential property developer has made the company an offer to buy the land for $3,000,000 if it decides not to build a factory on the site. It would cost $3,000,000 to build the factory. What would the Initial Investment (cash flow in Year 0) be for purposes of calculating whether or not to build the factory?

Question 40 options:

	$6,550,000
	$3,000,000
	$3,550,000
	$5,450,000
	$6,000,000