9. 8%: CF0:-79,000, C01:17,300, F01: 9, NPV: 29,071.16

20%: NPV: -9,264.28. NO NPV is negative.

Indifferent at 16.25%

16. a. Cash flow 1: 77,092.41/64,000=1.2 Cash flow 2: 24,122.46=1.34.

Cash flow 2 because we receive .14 cents more for every dollar that is invested.

b. Cash flow 1: NPV=13,092.41

Cash flow 2: NPV=6,122.46

Cash flow 1 because the NPV is greater.

c. PI is not a good measurement for comparison and is useful when available funds are limited.

19. Discontinuing:19.29

The Reinvestment approach: 25%: Decline because the NPV has a negative value of 3,168.00

9. 8%: CF0:-79,000, C01:17,300, F01: 9, NPV: 29,071.16

20%: NPV: -9,264.28. NO NPV is negative.

Indifferent at 16.25%

16. a. Cash flow 1: 77,092.41/64,000=1.2 Cash flow 2: 24,122.46=1.34.

Cash flow 2 because we receive .14 cents more for every dollar that is