24.) Southeast Compositions, Inc. is considering a project with the following cash flows:

Initial Outlay = $126,000

Cash Flows: Year 1 = $44,000

Year 2 = $59,000

Year 3 = $64,000

Compute the net present value of this project if the company's discount rate is 14%.

Select one:

a. $1,193

b. $725,000

c. $239,209

d. -$1,193

23.) Sentry Manufacturing paid a dividend yesterday of $5 per share. The dividend is expected to grow at a constant rate of 8% per year. The price of Sentry Manufacturing's stock today is $29 per share. If Sentry Manufacturing decides to issue new common stock, flotation costs will equal $2.50 per share. Sentry Manufacturing's marginal tax rate is 35%. Based on the above information, the cost of new common stock is

Select one:

a. 28.38%.

b. 31.40%.

c. 26.62%.

d. 24.12%.