common stock is selling for $50. The dividend paid next year will be $4.40 assuming a constant growth rate of 4.5%. What is the capital gains yield?

8%

8.8%

3.4%

4.5%

You are analyzing a project and have gathered the following data:

Year	Cash Flow
0	-$175,000
1	56,400
2	61,800
3	72,000
4	75,000
Required payback period	2.5 years
Required AAR	11.5%
Required return	14.5%

Based on the payback period of _____ years for this project, you should _____ the project.

	a.	2.79; accept
	b.	3.79; accept
	c.	2.79; reject