Alarm Systems Corporation's preferred stock pays a dividend of $3.60 and sells for $28.00. Alarm Systems Corporation has a marginal tax rate of 35%. What is the cost of preferred financing? 12.857% 13.785% 9.412% 11.953% The DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $300,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the payback period of this project? 2.67 years 4.00 years 3.09 years 2.50 years DYI Construction Co. is considering a new inventory system that will cost $650,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI'S required rate of return is 8%. What is the net present value of this project? $204,089 $87.417 $104,089 $96,320