1. You are considering a project that will require an initial outlay of $200,000. This project has an expected life of four years and will generate after-tax cash flows to the company as a whole of $60,000 at the end of each year over its five-year life. Thus, the free cash flows associated with this project look like this: Year Free Cash Flow ($) -200,000 70,000 70,000 70,000 70.000 Given a required rate of return of 10% percent, calculate the following: a. Discounted payback period b. Net present value c. Profitability index 2. You purchase equipment for $5,000. You expect to sell the equipment for $1,000. When you are done with it in 5 years, the company's marginal tax rate is 40%. What is the depreciation expense for each year and the after-tax salvage in year 5 if straight-line method is adopted? 3. Supposed that the company pay dividend of $1.20 per share this year. There has been a steady growth in dividends of 8% per year. The current price is $40. What is the cost of equity