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This is a two part question. YOU MUST GET BOTH PARTS CORRECT TO EARN 5 POINTS PART 1: A firm is considering an unusual projec please label the first answerand the secone answer. thank you
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Answer #1

rate positively ..

ans a) computation of NPV
Year Cash flow PVIF @ 7.1% present value
0 -540         1.0000            (540)
1 87         0.9337                81
2 87         0.8718                76
3 87         0.8140                71
4 87         0.7600                66
           (246)
therefore answer =            (246)
ans b) "no"
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