1. Coca-Cola, Inc. (KO) expects to pay a dividend of $2.10 per share next year. Historically their dividends have been growing at a constant rate of about 5% per year. Based on the risk of KO, investors require a 7.5% return. Estimate the current stock price for Coca-Cola.

   	A.	$76.35
   	B.	$84.00
   	C.	$91.45
   	D.	$103.21
   	E.	cannot be determined

2.

1. Coca Cola is evaluating an investment in a new syrup production machine. The initial investment in the project is $110,000. It has been estimated that annual cash inflows of $40,000 will be generated by the machine for the next 5 years. The opportunity cost of the project is estimated to be 6%. Calculate the Net Present Value (NPV) of the project.

   	A.	$58,495
   	B.	$90,000
   	C.	$43,218
   	D.	$34,875
   	E.	$64,755

3.

1. Coca Cola is evaluating an investment in a new syrup production machine. The initial investment in the project is $110,000. It has been estimated that annual cash inflows of $40,000 will be generated by the machine for the next 5 years. The opportunity cost of the project is estimated to be 6%. Calculate the Internal Rate of Return (IRR) of the

   project.

   	A.	6%
   	B.	12.7%
   	C.	23.9%
   	D.	19.6%
   	E.	32.8%

4.

1. Coca Cola is evaluating an investment in a new syrup production machine. The initial investment in the project is $110,000. It has been estimated that annual cash inflows of $40,000 will be generated by the machine for the next 5 years. The opportunity cost of the project is estimated to be 6%. Calculate the Payback Period (PB) of the project.

   	A.	5 years
   	B.	2.5 years
   	C.	2.75 years
   	D.	3.75 years
   	E.	3.5 years