Question: d. You are saving money for a down payment on a new house. You intend to place $7,500 at the end of each year for

d. You are saving money for a down payment on a

d. You are saving money for a down payment on a new house. You intend to place $7,500 at the end of each year for three years into an account earning 5% per year. At the end of the fourth year, you will place $10,000 into this account. How much money will be in the account at the end of the fourth year? (7 marks) e. Leonard, Inc. is considering a five-year project that has an initial after-tax outlay or after-tax cost of $70,000. The future after-tax cash inflows from its project for years 1, 2, 3, 4 and 5 are all the same at $35,000. Leonard uses the net present value method and has a discount rate of 10%. Will Leonard accept the project? (5 marks) f. AirH&H Inc. just paid a dividend of $1.33. Its stock has a dividend growth rate of 7.6% and a required return of 12.21%. What is the current stock price? (4 marks)

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