1. Project L costs $70,000, its expected cash inflows are $12,000 per year for 9 years, and its WACC is 10%. What is the project's payback?
2. A project has annual cash flows of $3,500 for the next 10 years and then $5,500 each year for the following 10 years. The IRR of this 20-year project is 10.46%. If the firm's WACC is 9%, what is the project's NPV?
3. Jack's Snowplowing last dividend was $1.25. The dividend growth rate is expected to be constant at 15% for 2 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price? a. $30.57 b. $31.07 c. $32.49 d. $33.50 e. $35.04.