What is net present value of this project

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1. A project will produce cash inflows of $1,750 a year for four years. The project initially costs $10,600 to get started. In year five, the project will be closed and as a result should produce a cash inflow of $8,500. What is the net present value of this project if the required rate of return is 14.75%?

a. $1,011.40

b. -$1,306.18

c. $5,474.76

d. -$935.56

e. -$5,474.76

2. You find a stock that you believe will be worth $28.50 in one year. If you also expect that stock to pay a dividend of $.0.35 next year, what is the most you would be willing to pay for the stock now if you need an 11% return?

A. $25.68

B. $25.36

C. $25.33

D. $25.99

Reference no: EM131975274

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