True or False

1. Your venture has signed a new consulting contract that will require you to invest in new analytical software and a new computer. The contract will generate the cash flows at specific times. Your cost of capital is 12%. In the XNPV function you can include the initial time and initial cash flow in the Excel formula so no need to net it out as in the NPV formula.

This project adds value to your company. True / False

dates	cash flows
12/10/2022	-$12,000.00
4/10/2023	$4,000.00
8/10/2023	$4,000.00
12/10/2023	$4,000.00
4/10/2024	$4,000.00

2.

principal	time	returns
$200,000	0
	1	5.3500%
	2	5.7000%
	3	6.0500%
	4	6.4000%
	5	6.7500%
	6	7.1000%
	7	7.4500%
	8	7.8000%
	9	8.1500%
	10	8.5000%

You have $200,000 today. There is a project that you believe will return increasing returns over the next ten years. In fact you have come up with the return schedule that you believe is the best forecast of rates of return on your investment. Based on these returns the FV of your $200,000 investment at the end of 10 years will be between $390,500 and $390, 510.

You make the investment at time zero and first interest is earned over the fist year so it is earned from time 0 to time 1. The FVSCHEDULE starts at time 1 not time 0. True / False