Look at the cash flows for projects F and G given below. Cash Flows ($) NPV IRR at Project Ce C3 C4 F 0 G C1 C2 (11,500) 6,600 6,600 6,600 (11,500) 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 26.5 7,706 C5 C6 C7 Cg (%) 10% 0 0 0 0 33.0 4,913 The cost of capital was assumed to be 10%. Assume that the forecasted cash flows for projects of this type are overstated by 12% on average. That is, the forecast for each cash flow from each project should be reduced by 12%. But a lazy financial manager, unwilling to take the time to argue with the projects' sponsors, instructs them to use a discount rate of 22%. a. What are the projects' true NPVs? (Do not round intermediate calculations. Round your answers to nearest dollar amount.) Project F Project G NPV at 10% b. What are the NPVs at the 22% discount rate? (Do not round intermediate calculations. Round your answers to nearest dollar amount.) Project F Project G NPV at 22%

Look at the cash flows for projects F and G given below. Cash Flows ($) Project Co F G NPV IRR at C4 C6 C7 Cg C1 C2 C3 (6,000) 4,400 4,400 4,400 ( % ) 10% 52.8 4,942 0 0 0 0 (6,000) 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 32.9 5,737 Project F Project G The cost of capital was assumed to be 10%. Assume that the forecasted cash flows for projects of this type are overstated by 8% on average. That is, the forecast for each cash flow from each project should be reduced by 8%. But a lazy financial manager, unwilling to take the time to argue with the projects' sponsors, instructs them to use a discount rate of 18%. a. What are the projects' true NPVs? (Do not round intermediate calculations. Round your answers to nearest dollar amount.) Project F Project G NPV at 10% C5 0 b. What are the NPVs at the 18% discount rate? (Do not round intermediate calculations. Round your answers to nearest dollar amount.) NPV at 18%

Look at the cash flows for projects F and G given below.   Cash Flows($) Project C0     C1   C2   C3   C4   C5   C6   C7   C8   IRR (%)   NPV at 10%   F (7,500 )   5,000   5,000   5,000   0   0   0   0   0   44.6   4,934   G (7,500 )   2,400   2,400   2,400   2,400   2,400   2,400   2,400   2,400   27.4   5,304     The cost of capital was assumed to be 10%. Assume that the forecasted cash flows for projects of this type are overstated by 8% on average. That is, the forecast for each cash flow from each project should be reduced by 8%. But a lazy financial manager, unwilling to take the time to argue with the projects’ sponsors, instructs them to use a discount rate of 18%.a. What are the projects’ true NPVs? (Do not round intermediate calculations. Round your answers to nearest dollar amount.)   b. What are the NPVs at the 18% discount rate? (Do not round intermediate calculations. Round your answers to nearest dollar amount.)

Look at the cash flows for projects F and G given below.   Cash Flows($) Project C0     C1   C2   C3   C4   C5   C6   C7   C8   IRR (%)   NPV at 10%   F (8,000 )   5,200   5,200   5,200   0   0   0   0   0   42.6   4,932   G (8,000 )   2,600   2,600   2,600   2,600   2,600   2,600   2,600   2,600   28.0   5,871     The cost of capital was assumed to be 10%. Assume that the forecasted cash flows for projects of this type are overstated by 8% on average. That is, the forecast for each cash flow from each project should be reduced by 8%. But a lazy financial manager, unwilling to take the time to argue with the projects’ sponsors, instructs them to use a discount rate of 18%.