What is the net present value of the project

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1. Can you explain how to calculate the Effective Quarterly Rate for stock that pays dividens quarterly and has a price of $3.60, a growth rate of 6% per annum indefinitely on dividends, a return of 12%, and a current dividend of $0.90.

2. A project has an initial outlay of $2,462. It has a single payoff at the end of year 5 of $9,906. What is the net present value (NPV) of the project if the company’s cost of capital is 14.77 percent? Round the answer to two decimal places.

Reference no: EM131843247

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