Please answer all the questions!!!!!

1.A project has an initial cost of $70,000, expected net cash inflows of $13,000 per year for 11 years, and a cost of capital of 11%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to the nearest cent.

2.A project has an initial cost of $35,000, expected net cash inflows of $10,000 per year for 9 years, and a cost of capital of 14%. What is the project's PI? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.

3.A project has an initial cost of $65,000, expected net cash inflows of $15,000 per year for 7 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places.

4.NPVs and IRRs for Mutually Exclusive Projects

Davis Industries must choose between a gas-powered and an electric-powered forklift truck for moving materials in its factory. Because both forklifts perform the same function, the firm will choose only one. (They are mutually exclusive investments.) The electric-powered truck will cost more, but it will be less expensive to operate; it will cost $23,000, whereas the gas-powered truck will cost $17,100. The cost of capital that applies to both investments is 11%. The life for both types of truck is estimated to be 6 years, during which time the net cash flows for the electric-powered truck will be $6,500 per year, and those for the gas-powered truck will be $4,750 per year. Annual net cash flows include depreciation expenses. Calculate the NPV and IRR for each type of truck, and decide which to recommend. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places.

	Electric-powered forklift truck		Gas-powered forklift truck
NPV	$		$
IRR	%		%

The firm should purchase -Select-electric-poweredgas-poweredItem 5 forklift truck.

5.NPV

Your division is considering two investment projects, each of which requires an up-front expenditure of $19 million. You estimate that the investments will produce the following net cash flows:

Year	Project A		Project B
1	$ 5,000,000		$20,000,000
2	10,000,000		10,000,000
3	20,000,000		6,000,000

What are the two projects' net present values, assuming the cost of capital is 5%? Do not round intermediate calculations. Round your answers to the nearest dollar.

Project A: $

Project B: $

What are the two projects' net present values, assuming the cost of capital is 10%? Do not round intermediate calculations. Round your answers to the nearest dollar.

Project A: $

Project B: $

What are the two projects' net present values, assuming the cost of capital is 15%? Do not round intermediate calculations. Round your answers to the nearest dollar.

Project A: $

Project B: $

What are the two projects' IRRs at these same costs of capital? Do not round intermediate calculations. Round your answers to two decimal places.

Project A: %

Project B: %

6.EMC Corporation's current free cash flow of $370,000 and is expected to grow at a constant rate of 4.5%. The weighted average cost of capital is WACC = 14%. Calculate EMC's estimated value of operations. Do not round intermediate calculations. Round your answer to the nearest dollar.

7.Horizon Value of Free Cash Flows

Current and projected free cash flows for Radell Global Operations are shown below.

	Actual	Projected
	2019	2020	2021	2022
Free cash flow	$611.720	$672.400	$712.447	$769.440
(millions of dollars)

Growth is expected to be constant after 2021, and the weighted average cost of capital is 10.55%. What is the horizon (continuing) value at 2022 if growth from 2021 remains constant? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.

$ million

8.DPS Calculation

Thress Industries just paid a dividend of $2.25 a share (i.e., D₀ = $2.25). The dividend is expected to grow 8% a year for the next 3 years and then 12% a year thereafter. What is the expected dividend per share for each of the next 5 years? Do not round intermediate calculations. Round your answers to the nearest cent.

D₁ = $

D₂ = $

D₃ = $

D₄ = $

D₅ = $

9.Constant Dividend Growth Valuation

Boehm Incorporated is expected to pay a $1.10 per share dividend at the end of this year (i.e., D₁ = $1.10). The dividend is expected to grow at a constant rate of 9% a year. The required rate of return on the stock, r_s, is 18%. What is the estimated value per share of Boehm's stock? Do not round intermediate calculations. Round your answer to the nearest cent.

$

10.Constant Dividend Growth Valuation

Woidtke Manufacturing's stock currently sells for $15 a share. The stock just paid a dividend of $1.20 a share (i.e., D₀ = $1.20), and the dividend is expected to grow forever at a constant rate of 4% a year. What stock price is expected 1 year from now? Do not round intermediate calculations. Round your answer to the nearest cent.

$

What is the estimated required rate of return on Woidtke's stock (assume the market is in equilibrium with the required return equal to the expected return)? Do not round intermediate calculations. Round the answer to two decimal places.

11.Nonconstant Dividend Growth Valuation

A company currently pays a dividend of $1.6 per share (D₀ = $1.6). It is estimated that the company's dividend will grow at a rate of 17% per year for the next 2 years, and then at a constant rate of 5% thereafter. The company's stock has a beta of 1.1, the risk-free rate is 7%, and the market risk premium is 2%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.

$

12.Preferred Stock Rate of Return

Nick's Enchiladas has preferred stock outstanding that pays a dividend of $4 at the end of each year. The preferred sells for $55 a share. What is the stock's required rate of return (assume the market is in equilibrium with the required return equal to the expected return)? Round the answer to two decimal places.

%

13.Declining FCF Growth Valuation

Brushy Mountain Mining Company's coal reserves are being depleted, so its sales are falling. Also, environmental costs increase each year, so its costs are rising. As a result, the company's free cash flows are declining at the constant rate of 8% per year. If its current free cash flow (FCF₀) is $5 million and its weighted average cost of capital (WACC) is 13%, what is the estimated value of Brushy Mountain's value of operations? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to two decimal places.

$ million

14.Preferred Stock Rate of Return

What is the required rate of return on a preferred stock with a $50 par value, a stated annual dividend of 8% of par, and a current market price of (a) $27, (b) $34, (c) $41, and (d) $61 (assume the market is in equilibrium with the required return equal to the expected return)? Do not round intermediate calculations. Round the answers to two decimal places.

%

%

%

15.Nonconstant Dividend Growth Valuation

Assume that the average firm in C&J Corporation's industry is expected to grow at a constant rate of 4% and that its dividend yield is 7%. C&J is about as risky as the average firm in the industry and just paid a dividend (D₀) of $1. Analysts expect that the growth rate of dividends will be 50% during the first year (g_0,1 = 50%) and 30% during the second year (g_1,2 = 30%). After Year 2, dividend growth will be constant at 4%. What is the required rate of return on C&J's stock? What is the estimated intrinsic price per share? Do not round intermediate calculations. Round the monetary value to the nearest cent and percentage value to the nearest whole number.

r_s: %

: $

16.Nonconstant Dividend Growth Valuation

Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $0.75 coming 3 years from today. The dividend should grow rapidly - at a rate of 60% per year - during Years 4 and 5. After Year 5, the company should grow at a constant rate of 6% per year. If the required return on the stock is 16%, what is the value of the stock today (assume the market is in equilibrium with the required return equal to the expected return)? Do not round intermediate calculations. Round your answer to the nearest cent.

$

17.Preferred Stock Valuation

Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 10% of its $100 par value. Preferred stock of this type currently yields 7%. Assume dividends are paid annually.

What is the estimated value of Rolen's preferred stock? Round your answer to the nearest cent.

$

Suppose interest rate levels have risen to the point where the preferred stock now yields 14%. What would be the new estimated value of Rolen's preferred stock? Round your answer to the nearest cent.

$

18.You buy a share of The Ludwig Corporation stock for $18.90. You expect it to pay dividends of $1.09, $1.1718, and $1.2597 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $23.48 at the end of 3 years.

Calculate the growth rate in dividends. Round your answer to two decimal places.

%

Calculate the expected dividend yield. Round your answer to two decimal places.

%

Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return (assume market is in equilibrium with the required rate of return equal to the expected return)? Do not round intermediate calculations. Round your answer to two decimal places.

%