17. Suppose a firm's free cash flows are expected to be $27 million at the end of one period from today and are expected to grow three percent each period thereafter. If the cost of capital is 18-percent per period and the market value of debt is $90 million, calculate the total value of the equity A) $50 million B)$60 million D) $80 million E)$90 million 21. A firm can earn the cost of capital on any cash-inflows by: A) Selling stock and bonds B) Buying back the firm's bonds and stock C) Increasing fixed or variable costs D) Reducing fixed costs E) Reducing total variable costs 18. If the firm described in the previous question has five million shares outstanding, what is the implied price per share? A)S10 B)$12 C)S14 D)S16 E)$18 22. Determine the Internal Rate of Return (IRR) of a project that costs $1,000 today and has a single cash inflow of $1,610.51 occurring at the end of five years. A) 9% B)10% C)11% D) 12% E) 13% 19. Suppose a firm owns a machine with current book value of $16,000. What is the after tax cash flow if the firm sells the machine today for $24,000 and the firm's marginal tax rate is 28-percent? A) $13,760 B) $16,000 C)$17,760 D) S21,760 E) $24,000 23. Determine the Internal Rate of Return (IRR) of a project that costs $1,000 today and has a single cash inflow of $1,120 occurring at the end of one year A)9% B) 10% C)11% D) 12% E) 13% 20. Suppose that a project costs $100 and has cash flows of $14 at the end of each of the next four years and a cash flow of $116 at the end of five years. The project's Internal Rate of Return (IRR) is: A) Greater than 14% B) Less than 14% C) Exactly 14% D) Unknown without cost of capital E) None of the above 24. Determine the Net Present Value of a project that costs $1,000 today and has a single cash inflow of $1,367.63 occurring at the end of three years if the cost of capital is 1 1%. A) Zero B)$6 C)S17 D)$22 E) $33