USE THE INFORMATION BELOWTO ANSWER QUESTIONS 47 and 48

ABC Industries is considering a project that has the following cash flows:

Year Cash Flow

0 -51,000

1 10,000

2 25,000

3 15,000

4 25,000

5 34,000

The project has a payback period of 3.5 years. The firm's cost of capital is 17%.

47. The project's net present value (NPV) is $_______.

48. The IRR of the project is ____%.

21. Data for the last 8 years of stock prices and dividends paid for Poggy, Inc. are listed below:

Year End of Year Stock Price Dividend

0 $12.10

1 $14.68 $0.80

2 $9.57 $0.83

3 $12.00 $0.91

4 $12.46 $1.02

5 $18.32 $1.02

6 $21.10 $1.24

7 $19.54 $0.80

8 $22.18 $1.41

a. What is the average rate of return for Poggy, Inc. stock over the 8 year time period?

b. What is the standard deviation of returns for Poggy, Inc. stock over the 8 year time period? (Compute the standard deviation assuming this is a population of returns, not a sample that is, use the procedure described in the textbook for calculating the standard deviation of a series of stock returns).