1. Capital Asset Pricing Model is a hotly debated concept for stock valuation, especially after the financial collapse in 2008-09. Google "CAPM" and post your thoughts on why many Wall Street analysts are either questioning CAPM's validity or what might be happening to unduly influence its effectiveness.
2. Project L costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 7%. What is the project's discounted payback? Round your answer to two decimal places. years