1. Over the past six years, a stock had annual returns of 10 percent, 5 percent, 7 percent, 8 percent, 2 percent, and -11 percent, respectively. What is the standard deviation of these returns?
2. Five years ago, ABC Company invested $58,919 in a machinery. The investment in net working capital was $4,440 which would be recovered at the end of the project. Today, ABC Company is selling the machinery for $20,157. The book value of the machinery is $13,580. The tax rate is 37 percent. What are the terminal cash flows in Year 5?