Question
1. A firm is evaluating a project with an initial cost of $ 930,142 and annual cash inflows of $ 264,190 per year (first cash
1. A firm is evaluating a project with an initial cost of $ 930,142 and annual cash inflows of $ 264,190 per year (first cash flow to be received exactly one year from today) for each of the next 5 years. If the cost of capital for this project is 12 %, what is this project's NPV? Round your answer to 2 decimal places and record without a dollar sign and without any commas. If your answer is a negative value, enter a minus sign before your number with no space between the sign and the number.
2. If the returns on Stock A are as follows: Year 1 return = 22 %, Year 2 return = -11 %, Year 3 return = 9 %, Year 4 return = 1 %, and Year 5 return = 2 %, what is the average return for Stock A over this 5 year period? (Record your answer as a percent rounded to 1 decimal place. If your answer is negative, place a minus sign before your number with no space between the sign and the number. For example, record negative 14.284% as -14.3).
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