You are considering the following two mutually exclusive projects, which have expected cash flows as summarized below. Both projects have the same initial (Year 0) cash outflow of -$55,441. The required rate of return is 14.6 percent for project A and 13.8 percent for project B.

Because its NPV is approximately $____________ higher that Project B, your recommendation is to choose Project A. (round your answer to the nearest dollar)

Year Project A Project

1 24,000 40,000

2 36,000 20,000

3 21,000 10,000

You are considering a project that provides annual cash flows of $13,167 for 12 years. If the required rate of return for projects like this is 16.0%, what is the maximum price youd be willing to pay for this project?

(round answer to nearest dollar)

An investment project has an installed cost of $506,753. The cash flows over the 4-year life of the investment are projected to be $275,653, $203,496, $103,802, and $90,633, respectively.

What is the NPV of this project if the discount rate is zero percent?

(round answer to nearest dollar)