1. Find the NPV of a project which costs $14,000 and provides cash flows of $2,000 per year the first 6 years, and $3,000 per year the next 6 years. Assume a 12% rate of return and annual compounding.
2. ABC Company is considering an investment that will cost the company $680 at time=0. The after-tax cash flows are expected to be $112 each year for 10 years. What is the payback period?
3. One year ago, you puchased 233 shares of ABC stock for $36.63 per share. During the year, you received a dividend of $8.51 per share. Today, you sold all your shares for $53.12. What are the percentage return on your investment?
4. All of the information needed by profession analysts to give a complete picture of a company is found in the financial statements-True or False