The project to recover its initial cash outlay

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1. An investor owns $5,000 of Adobe Systems stock, $1,000 of Dow Chemical, and $4,000 of Office Depot. What are the portfolio weights of each stock? (Round your answers to 4 decimal places.) Portfolio weights Adobe System Dow Chemical Office Depot

2. The initial outlay is $40,000, incremental cash flows for the next 5 years are $15,000, $14,000, $13,000, $12,000, and $12,000 respectively. The discount rate is 12%. Should the law firm invest in the new computer system? How long does it take for the project to recover its initial cash outlay?

Reference no: EM131913624

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