16. James Construction Co. is considering a new inventory system that will cost $950,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $350,000 in year two, $150,000 in year three, and $180,000 in year four. The required rate of return is 8%. What is the net present value of this project (rounded to the nearest dollar)? A) $104,089 B) -$100,328 C) -$74,477 D) $87,417 17. Lithium, Inc. is considering two mutually exclusive projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year two. Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year three, and $45,000 in year four. Lithium, Inc.'s required rate of return for these projects is 10%. The equivalent annual annuity amount EAA for project A, rounded to the nearest dollar, is A) $17,385 B) $15,024. C) $22,789. D) $20,936 18. Suppose currently T-bill rate is 2% and S&P 500 return is 10%. The beta of Lithium, Inc is 1.8. Lithium, Inc just paid a dividend of 1.3 dollars per share, and dividend has a growth rate of 9%. What is the intrinsic value of Lithium, Inc stock per share? A) 17.41 B) 15.58 C) 19.15 D) 20.46