1. Compute the traditonal payback for a project that costs $64,000 if it is expected to generate $16,000 per year for six years? If the firm's required rate of return is 12 percent, what is the project's discounted payback period? Should the project be purchased?
2. High growth firms are advised to initiate dividend to increase shareholder base (pension), do you agree with the argument and why?
3. Give a full analysis how a US Manufacturing Company based in NYS make use of this process in their Finance Department.
4. Discuss the pros and cons of deciding to become a publicly traded company as opposed to remaining a privately held company. Use financial calculations as needed.