A car dealership offers a car for $12,000, with up to one year to pay foe the car. If the interest rate is 5%, what is the net present value (NPV) of this oflet to buytrs who elect net to pay for the car for one year? A. $1,143 B. $12,000 C. $571 D. $11,429 A manulacturer of video games develops a new game over two years. This costs $390,000 per year with one payment made immediatly and the other at Ee end of two yean. When the game is released, it is expected to make $1,50 million per year for three years after that. What is the net present value (NeP) of this docsion if the cost of capital is tons? A. $2,507,078 B. $2,977,156 C. $1,966,924 D. $1,723,616 Luther industries has a dividend yield of 3.9% and a cost of equity capital of 13%. Luther industries' dividends are expected to grow at a constant rate indefietery. The growth rate of Luther's dividends are closest to: A. 18.2% B. 9.1% C. 16.9% D. 82% Peter has a business epportunity that requires him to invest $10,000 today, and teceive $12,000 in one year Me can ether use $10,000 that he already has for this itvesiment or bonow the monty the best allemative for Peter out of the following choices? A. Yes, since he can borrow the $10,000 trom a bank, repair his home, invest $10,000 in the business epportunty, which, since it has a NPV >0 wal mean fe wall ast come out ahead after repaying the loan B. Yes, since the net present value (NPV) of the invesiment is greater than zeco he can ifrest ses $10,000 in the business opportunity, and then neat year use this money plus the besett from this money to make the necessary home repars. C. No, since the net present value (NPV) of the investrent should he take at, is less than the net present valus (NPV) of the home repais 1 he dativs them for one year. D. Yes, since the net present valie (NPV) of the investment, should he take Z, is greater than the net present valoe capV) of the home repers if he delays inem for one year