1. Which of the following comes closest to the net present value (NPV) of a project that produces an inflow today of $108 but requires the payment of a cash flow of $200 at the end of year 3 if the required rate of return is 10%?
A. 42.26
B. (42.26)
C. 64.56
D. (64.56)
2. Bond coupon payments and dividends from perferred stocks and common stocks can all enjoy tax-deductible feature.
A. True
B. False