18.Albury Company is adding a new assembly line at a cost of $8.5 million. The company expects the project to generate cash flows of $2 million, $3 million, $4 million, and $5 million over the next four years. Its cost of capital is 16 percent. What is the payback period for this project (rounded to one decimal place)?

Select one:

A. 2.8 years

B. 2.9 years

C. 3.1 years

D. 3.4 years

19.At the end of the year, ABC will pay a $2.66 dividend per share After that the dividend is expected to increase at a constant rate of 5% p.a. If you require a 17%p.a. return on the stock, what is the value of ABC stock? (round to the nearest cent; dont use $ sign)

20.Bambi Corporation is considering an investment that will cost $80,000 and have a useful life of 4 years. The cash flows from the project are expected to be $25,000 per year in the first two years then $20,000 per year for the last two years. What is the payback period for this investment (Rounded to one decimal place)?

Select one:

A. 3.2 years

B. 3.5 years

C. 3.1 years

D. 3.9 years