Consider a project with the following cash flows: year 1, -$400; year 2, $200; year 3, $600; year 4,

Consider a project with the following cash flows: year 1,
-$400; year 2, $200; year 3, $600; year 4, -$900; year 5, $1000; year 6, $250;
year 7, $230. Assume a discount rate of 15% per year.

a. Compute the project’s NPV if cash flows occur at the ends
of the respective years.

b. Compute the project’s NPV if cash flows occur at the
beginnings of the respective years.

c. Compute the project’s NPV if cash flows occur at the
middles of the respective years.