10. Suppose a company has proposed a new 4-year project. The project has an initial outlay of $55,000 and has expected cash flows of $16,000 in year 1, $21,000 in year 2, $26,000 in year 3, and $34,000 in year 4. The required rate of return is 16% for projects at this company. What is the Payback for this project? (Answer to the nearest tenth of a year, e.g. 1.2)

9. A company just paid a dividend of $1.40 per share. You expect the dividend to grow 11% over the next year and 9% two years from now. After two years, you have estimated that the dividend will continue to grow indefinitely at the rate of 4% per year. If the required rate of return is 10% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)

8. A company just paid a dividend of $1.30 per share. The consensus forecast of financial analysts is a dividend of $1.50 per share next year and $2.20 per share two years from now. Thereafter, you expect the dividend to grow 5% per year indefinitely into the future. If the required rate of return is 10% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)