1 ) Calculate the net present value of a project which requires an initial investment of $225,000 and it is expected to generate a cash inflow of $45,000 each month for 12 months. Assume that the salvage value of the project is zero. The target rate of return is 12% per annum?.

281478

2,87,754

3,87,754

218,754

2)

You are given the following information:

Name of the company	Current Market Price (Rs.)	Current Dividend per share (Rs.)	Growth rate in dividend per share (%)	Beta	Risk-free rate (%)	Market Return (%)
M Limited	32	1.06	15	1.10	6.25%	11.75%

Determine the cost of equity using:

a) Dividend discount model

b) CAPM

Choose the response that correctly depicts answers to both the questions above.

Group of answer choices

18.8%; 19.18%

18.8%; 12.3%

3.81%; 12.3%

18.31%, 19.18%