Question: question 1 and 3 please ? Problem 1 (six points total): Calculate the NPV of the project on the right with each of the following
Problem 1 (six points total): Calculate the NPV of the project on the right with each of the following WACC's: Year 0 A. NPV @ WACC 5% (2 points) Year 1 Year 2 B. NPV @ WACC 10% (2 points) Year 3 Year 4 C. If the projects are independent (2 points) 1 Would you do the project if WACC is 5%? Would you do the project if the WACC is 10%? Problem 2 (three points): Calculate the DIVIDEND YIELD on a preferred stock with a rate of 9% and a $50 par value, trading at $42? $ (39,000) 12,000 10,000 11,000 15,000 Problem 3 (two points): When using the NPV method to evaluate projects, and assuming each opportunity gives you a positive $ value, how do you decide among projects if they are mutually exclusive
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