# 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 projects NPV if cash flows occur at the ends

of the respective years.

b. Compute the projects NPV if cash flows occur at the

beginnings of the respective years.

c. Compute the projects NPV if cash flows occur at the

middles of the respective years.