1. Project L costs $35,000, its expected cash inflows are $9,000 per year for 9 years, and its WACC is 13%. What is the project's payback? Round your answer to two decimal places. years
2. Project L costs $60,000, its expected cash inflows are $12,000 per year for 12 years, and its WACC is 13%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. $
3. Suppose a company does not have debt, but you want to replicate the payoff from this company if it had debt. You can lend and borrow money at the same interest rate as this company.
Should you buy or short-sell company's equity?
Should you lend or borrow?