1. Managers of CVS Pharmacy are considering a new project. This project would be a new...

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Finance

1. Managers of CVS Pharmacy are considering a new project. Thisproject would be a new store in Odessa, Texas. They estimate thefollowing expected net cash flows if the project is adopted.
Year 0: ($1,250,000)
Year 1: $200,000
Year 2: $500,000
Year 3: $400,000
Year 4: $300,000
Year 5: $200,000
Suppose that the appropriate discount rate for this project is6.7%, compounded annually.
Calculate the net present value for this proposed project.
Do not round at intermediate steps in your calculation. Roundyour answer to the nearest dollar. If the NPV is negative, includea minus sign. Do not type the $ symbol.
2. Managers at Terlingua Drilling identify a potential newdrilling project. They estimate the following expected net cashflows if the project is adopted.
Year 0: ($1,250,000)
Year 1: $100,000
Year 2: $400,000
Year 3: $400,000
Year 4: $200,000
Year 5: $200,000
Year 6: $300,000
Year 7: $100,000
Suppose that the appropriate discount rate for this project is12%, compounded annually.
Calculate the net present value for this proposed project.
Do not round at intermediate steps in your calculation. Roundyour answer to the nearest dollar. If the NPV is negative, includea minus sign. Do not type the $ symbol.

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1. Managers of CVS Pharmacy are considering a new project. Thisproject would be a new store in Odessa, Texas. They estimate thefollowing expected net cash flows if the project is adopted.Year 0: ($1,250,000)Year 1: $200,000Year 2: $500,000Year 3: $400,000Year 4: $300,000Year 5: $200,000Suppose that the appropriate discount rate for this project is6.7%, compounded annually.Calculate the net present value for this proposed project.Do not round at intermediate steps in your calculation. Roundyour answer to the nearest dollar. If the NPV is negative, includea minus sign. Do not type the $ symbol.2. Managers at Terlingua Drilling identify a potential newdrilling project. They estimate the following expected net cashflows if the project is adopted.Year 0: ($1,250,000)Year 1: $100,000Year 2: $400,000Year 3: $400,000Year 4: $200,000Year 5: $200,000Year 6: $300,000Year 7: $100,000Suppose that the appropriate discount rate for this project is12%, compounded annually.Calculate the net present value for this proposed project.Do not round at intermediate steps in your calculation. Roundyour answer to the nearest dollar. If the NPV is negative, includea minus sign. Do not type the $ symbol.