1. Why do we discount the future cash flows? What determines the discount rate 2. Suppose you have a project that have the expected cash flows as $5000, $20 $5000 for three years. And the financing cost is 5% per year, the cost of the proje is $4,000, would you do it? Why? B.Suppose you're given with the following information for some assets; a 10-year 2.0 coupon bond of semi-annual coupon payment with face value as $1,000, a common stock of $3.60 expected dividend with 2.5% growth rate currently. Both bond and common stock are issued by Company M&M. Answer the following questions. a) Suppose the yield to maturity (that is, the discount rate) for the bond is 10%, what is the present value of this coupon bond? $435.67 2) $501.51 3) $738.9 4) $583.20 5) none of the above Is it a discount bond? Why