Question: 4 Project ABC has cash flows depicted in table below. Given that ABC has a weighted average cost of capital of 10%, calculate the NPV

 4 Project ABC has cash flows depicted in table below. Given

4 Project ABC has cash flows depicted in table below. Given that ABC has a weighted average cost of capital of 10%, calculate the NPV statistic, and determine whether to accept or reject this project. Year 0 1 2 3 Cash flow -1200 500 200 300 100 NPV is -286.47; Reject project NPV is -260.43; Reject project NPV is 260.43; Accept project NPV is 286.47; Accept project QUESTION 17 Beehive Corporation uses the average of CAPM and the constant-growth model to estimate its cost of equity. Its shares sell for $25 per share. Next year's dividend is estimated at $0.25 and is expected to grow 4% per year, indefinitely. The current risk-free rate is 0.5%, the expected return on the market is 9%, and the stock has a beta of 1.5. What would the firm's cost of equity be? O 11.67% 13.26% 13.63% 14.00%

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