Bill plans to open a service center. The equipment will cost $50,000. Bill expects the after-tax cash inflows to be $15,000 annually for 8 years, after which he plans to scrap the equipment and retire. What is the project's payback period? a) 2.67 years b) 3.33 years c) 3.67 years d) 4.33 years If the internal rate of return is greater than the required rate of return, a) the present value of all the cash inflows will be greater than the initial outlay b) the payback period will be more than the life of the investment c) a and b d) none of the above Con Edison Inc. had earnings per share of $2.95 in 2014 and a dividend payout ratio of 50%. If dividends are expected to grow by 5% in 2015, beta is 0.75, Treasury Bill rate is 6% and market risk premium is 5.5%, how much should an investor pay for the stock? (to the nearest dollar). a) $41.80 b) $30.32 c) $45.00 d) $38.39