Question
1a. A real estate investment has the following expected cash flows: YEAR CASH FLOW 0 -$103,295.00 1 $14,650.00 2 $29,929.00 3 $51,445.00 4 $42,385.00 The
1a.
A real estate investment has the following expected cash flows:
| YEAR | CASH FLOW |
|---|---|
| 0 | -$103,295.00 |
| 1 | $14,650.00 |
| 2 | $29,929.00 |
| 3 | $51,445.00 |
| 4 | $42,385.00 |
The investor wants a 7.00% return on this investment. What is the NPV of this opportunity? (round to 2 decimals)
1b.
A share of Expedition Everest Corporation sells for $20.00 this morning on the secondary market. After careful analysis, you believe the stock will pay the following dividends over the next three years:
| YEAR | 1 | 2 | 3 |
|---|---|---|---|
| Dividend | $1.00 | $1.25 | $1.40 |
The analyst has an exit strategy to hopefully sell the stock after three years for $22.02.
The current risk free rate in the economy is 2.57%, while the historical market risk premium is 5.81%. What is the beta for Expedition Everest Corporation if the stock is fairly priced? (round to 2 decimals)
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Electronic Waste An Actual Gold And Silver Mine
Authors: Antonio Alcivar
1st Edition
979-8367641059
