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You are offered an investment opportunity in which you will receive $25,000 in one year in exhcange for paying 23,750 today. Suppose the risk-free...

1. You are offered an investment opportunity in which you will receive $25,000 in one year in exhcange for paying 23,750 today. Suppose the risk-free interest rate is 6% per year. Should you take this project? The NPV for this project is closes to _____?

2. Boulderado has come up with a new composite snowboard. Development to take Boulderado four years and cost $250,000 per year, with the first of the four equal investments payable today upon acceptance of the project. Once in production the snowboard is expected to produce annual cash flows of 200,000 each year for 10 years. Boulderado's discount rate is 10%. The NPV for Boulderado's snowboard project is closest to ______.

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