1) For a stock that pays no dividends, today's price is?

a. the price that is discounted by the required rate

b. the present value of next year's price.

c. the future value as next year's price

d. he price that has the growth rate greater than the required rate

2) The new grocery store requires $50 million in initial investment. You estimate that the store will generate $5 million of after-tax cash flow each year for five years. At the end of five years, it can be sold for $60 million (ignore taxes). What is the net present value (NPV) of the project at a discount rate of 10 percent?