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answer all parts Today, Prague Castle Inc. is investing $100,000 in some new equipment. The company expects the cash flows to increase by $30,000 a
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Today, Prague Castle Inc. is investing $100,000 in some new equipment. The company expects the cash flows to increase by $30,000 a year for the next three years and $50,000 a year for the following five years because of this investment. How long must the firm wait until it recovers all of its initial investment? 4.4 years 2.5 years 1.8 years 3.2 years Pyramids Co. increases its annual dividend by 4 percent each year. The common stock has a market price of $50 a share on a required return of 8 percent. What is the amount of the last dividend this company paid? $1.92 $2.25 $3.00 $4.70 You are considering an investment project with the cash flows of -300 (the initial cash flow), 700 (cash flow at year 1), -200 (cash flow at year 2). Given the discount rate of 10%, compute the Modified Internal Rate of Return (MIRR) using the combination approach. 50.44% 37.84% 10.72% 28.64% Step by Step Solution
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