1. One project has three cash flows: at to, the initial investment cost is $150; at t, the project pays $121; at t2, the project needs an extra investment $242; at t3, the project pays $665.5. The project has a constant spot rate of return 10%. What is the present value of the project? (Hint: is C2 a cash inflow or a cash outflow?] 2. Mr. GOOD buys Company BAD's stock. At to, the price of the stock is $100 per share. At t, Company BAD pays $20 dividends, and the price of Company BAD's stock decreases to $90. (a) What is the rate of return? Does Mr. GOOD get a capital gain or a capital loss? What is the dividend yield? (b) If the spot rate of return is 10%, what is the present value of this stock investment? (c) Suppose Company BAD pays $20 dividends at t, and the stock can be sold only at t2. What price at t2 can guarantee Mr. GOOD a non-negative net present value