1. For a project with an initial investment of $42,000 and cash inflows of $10,000 a year for six years, calculate NPV given a required return of 10.5%/year.
a. $1,699
b. $655
c. -$1,205
d. $922
e. $1,103
2. A firm's stock has a required return of 10%. The stock's dividend yield is 9%. What is the dividend the firm is expected to pay over a one year period if the current stock price is $40?
a. $3.60
b. $2.80
c. $3.20
d. $2.40
e. $2.00