You are considering a project that will require an project has an expected life of four years and will generate after-tax cash the company as a whole of $60,000 at the Thus, the free 1 initial outlay of $200,000 This flows to end of each year over its five-year life. cash flows associated with this project look like this: Year Free Cash Flow ($) -200,000 70,000 70,000 70,000 70,000 0 1 3 4 Given a required rate of return of 10% percent, calculate the following: a. Discounted payback period b. Net present value c. Profitability index You purchase equipment for $5,000. You expect to sell the equipment for $1,000. When you are done with it in 5 years, the company's marginal tax rate is 40% year and the after-tax salvage in year 5 if straight-line method is adopted? 2. What is the depreciation expense for each Supposed that the company pay dividend of $1.20 per share this year. There in dividends of 8% per year. The current price is $40. What is the cost of equity? 3. has been a steady growth O N nt