6B3:

Green Landscaping, Inc. is using net present value (NPV) when evaluating projects. Green Landscaping's cost of capital is 7.87 percent. What is the NPV of a project if the initial costs are $1,584,993 and the project life is estimated as 5 years? The project will produce the same after-tax cash inflows of $699,223 per year at the end of the year.

Round the answer to two decimal places.

6F6:

Heavy Rain Corporation just paid a dividend of $2.43 per share, and the firm is expected to experience constant growth of 2.81% over the foreseeable future. The common stock is currently selling for $76.73 per share. What is Heavy Rain's cost of retained earnings using the Gordon Model (DDM) approach?

Round the answers to two decimal places in percentage form.