1. The Blueberry Company is considering a project which will cost $463 initially. The project will not produce any cash flows for the first 3 years. Starting in year 4, the project will produce cash inflows of $543 a year for 5 years. This project is risky, so the firm has assigned it a discount rate of 19.1 percent. What is the net present value?
2. Analyze the performance of the following firm: Blank This Year Last Year Assets 500 478 Liabilities 100 100 Sales 480 478 EBIT 140 149 Interest 10 10 Taxes 65 70 Net Income 65 69 (This year’s ratios: ROE .163, GROA .28, FE .581, GPM .292, ATO .96, EM 1.25, IR .929, TR .5)