both questions please

7. Explain why the above two techniques give you different answers. 8. What is the project's IRR? Will you accept this project? Explain your answer. 4. What is the project's payback period? Will you accept the project if the required payback period is 7 years? 5. What is the project's fair value if you require a 5% return? What is the project's NPV? Will you accept the project? Explain your answer, 6. 1 2 You win a 5-year contract to be the sole supplier of hardware to a business. You project the following cash flows for the next 5 years: 2 3 -$10,000 $20,000 $25,000 $25,000 $25,000 Assuming a 6% required rate, what is the fair value of this contract now? Is this contract value- enhancing if you paid $71,000 for the contract? 3. AT&T currently in 2020) pays $2.08 in dividends per share. Next year's (2021) dividends are expected to be $2.16 and the dividends are expected to grow at the same rate forever as the growth rate between 2020 and 2021. AT&T's stock price today is $29.75. What rate of retum are shareholders requiring, given the above information? Use the following information for questions 4-8. Year 0 1 2 3 Cash Flow -$82,000.00 (Initial investment) $40,000.00 -$21,000.00 $20,000.00 $30,000.00 -$10,000.00 $23,500.00 5 6 7. Explain why the above two techniques give you different answers. 8. What is the project's IRR? Will you accept this project? Explain your answer. 4. What is the project's payback period? Will you accept the project if the required payback period is 7 years? 5. What is the project's fair value if you require a 5% return? What is the project's NPV? Will you accept the project? Explain your answer, 6. 1 2 You win a 5-year contract to be the sole supplier of hardware to a business. You project the following cash flows for the next 5 years: 2 3 -$10,000 $20,000 $25,000 $25,000 $25,000 Assuming a 6% required rate, what is the fair value of this contract now? Is this contract value- enhancing if you paid $71,000 for the contract? 3. AT&T currently in 2020) pays $2.08 in dividends per share. Next year's (2021) dividends are expected to be $2.16 and the dividends are expected to grow at the same rate forever as the growth rate between 2020 and 2021. AT&T's stock price today is $29.75. What rate of retum are shareholders requiring, given the above information? Use the following information for questions 4-8. Year 0 1 2 3 Cash Flow -$82,000.00 (Initial investment) $40,000.00 -$21,000.00 $20,000.00 $30,000.00 -$10,000.00 $23,500.00 5 6