Question: Year 0 1 2 3 4 5 6 7 Expected Net Cash Flow Project A Project B -375 -575 -300 190 -200 190 -100 190

Year 0 1 2 3 4 5 6 7 Expected Net Cash Flow Project A Project B -375 -575 -300 190 -200 190 -100 190 600 190 600 190 926 190 -200 0 1) Assume that the firm's number of outstanding shares is 100, what is the expected change in the stock's price? What are the implicit assumptions that you are making for the expected change to realize? Year 0 1 2 3 4 5 6 7 Expected Net Cash Flow Project A Project B -375 -575 -300 190 -200 190 -100 190 600 190 600 190 926 190 -200 0 1) Assume that the firm's number of outstanding shares is 100, what is the expected change in the stock's price? What are the implicit assumptions that you are making for the expected change to realize

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