$445 1. Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 2 3 $405 Cash flows $850 $525 $485 a. 2.24 years b. 1.93 years c. 2.20 years d. 1.58 years e, 1.68 years 2. Jazz World Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected. WACC: 14.25% Year 0 1 2 3 4 Cash flows -$1,200 $400 $425 $450 $475 a. $56.80 b.$56.24 c. $61.86 d. $64.67 c. $70.29 1 3. Carter's preferred stock pays a dividend of $1.00 per quarter. If the price of the stock is $70.00, what is its nominal (not effective) annual rate of return? a. 4.34% b. 6,46% c. 4.63% d. 5.60% e. 5.71% 4. Confu Inc. expects to have the following data during the coming year. What is the firm's expected ROE? Capital Debt/Capital, book value EBIT $190.000 65% $25,000 Interest rate Tax rate 8% 25% a. 15.86% b. 17.91% 1200