1. Wiley is considering a new printing press. It costs $1072000. It has a useful life of 5 years. They expect it will save them $592000 per year. After 5 years its salvage value will be $185000. Assuming a MARR of 17.8% per year. What is the present worth of the printing press?
2. Paccar’s current stock price is $87.24 and it is likely to pay a $3.03 dividend next year. Since analysts estimate Paccar will have an 15.8 percent growth rate, what is its required return? (Round your answer to 2 decimal places.)