1. The student will determine the Net Present Value of the following project:

- CF0 NCF1 NCF2 NCF3 NCF4 NCF5

Investment $ 125,000

Net Flows $ 35,000 $ 40,000 $ 20,000 $ 42,000 $ 25,000

Discount Rate 7% 7% 7% 7% 7%

2. Determine the internal rate of return (IRR) with the data from problem 1.

3. Under both evaluation methods (NPV and IRR) is the project accepted or rejected?

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4. If the expected dividend for the year is $ 3.50 and the market value of the common stock is $ 50.00, then the "price earning ratio" is ______.

5. When P1 = $ 56, r = 8% and Div = $ 2.50, P0 is _______.

6. The P / P0 + Div. / P0, this is equal to _______________.

7. With a dividend payment of $ 5.00 per annum for three years and a discount rate of 5%, cash flows have a value of_______.

8. The P, represents change in _________.

9. P = $ 12.50 and Div = 0, then rtotal will equal _______.

10. The value of the share in the market is always higher than its par value.

to. Correct b. Incorrect.

I NEED RESULTS AND USED FORMULAS.