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A project has the following cash flows. What is the project's payback period? Enter your answer using 2 decimal places, e.g., if you calculate 6.75,

A project has the following cash flows. What is the project's payback period? Enter your answer using 2 decimal places, e.g., if you calculate 6.75, enter 6.75.

Year

Cash flow

0

-1,000

1

250

2

275

3

325

4

375

A stock has a beta of 1.2, the expected return on the market is 10%, and the risk-free rate is 4%. What is the cost of equity according to the CAPM?

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