Roxxon Inc. is considering a project that will require an initial investment of $600,000. The company's CFO wants to know how long it will take to recover its initial investment in the project. The project's expected net cash flows are: Year Cash Flow 1 $300,000 2 $500,000 3 $400,000 1.92 years 1.60 years 1.44 years 1.36 years

Canmore Inc. is forecasting an EPS of $3.00 for the coming year on its 600,000 outstanding shares of stock. Its capital budget is forecasted at $800,000, and it is committed to maintaining a $2.00 dividend per share. It finances with debt and common equity, but it wants to avoid issuing any new common stock during the coming year. Given these constraints, what percentage of the capital budget must be financed with debt?

a. 50%

b. 75%

c. 37.50%

d. 25%