1.

Bumblebees Inc., is considering a new project that requires an initial cash investment of 10,000. The project will generate cash inflows of 3,000, 11,500, 13,500 and 10,000 over each of the next four years, respectively. How long will it take to recover the initial investment?

0 years

0.61 years

1.60 years

2.87 years

3.27 years

2.

Firm Z's new project has an initial cost of $250,000. The project is expected to generate cash flows of $35,000 for 7 years and a cash flow of $50,000 in Year 8. If the required return is 5%, what is the project's NPV?

12,795

-13,635

-14,200

13,270

-11,525

3.

Kronos Quartet's Cleaning Company stock is selling for $32.60 a share based on a total rate of return of 13.8 percent. What is the amount of the next annual dividend if the dividends are increasing by 2.4 percent annually?

2.71

4.04

3.18

2.86

3.72