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Conslder the following peijoct, with cash flows gelven as follows and the require a 2 0 cisetum an your incatminent, ( 2 0 Points )
Conslder the following peijoct, with cash flows gelven as follows and the require a cisetum an your incatminent, Points
Apply the payhack criterion, assume that preset time is two yeurn. Do you acocpl the projecr? Why or Why not?
b If you apply the discounted puyback eriterion, asoume that precet time is two jemen Do you accepl the project? Why of Why not?
c If you apply the Net Present Value criterion, Do you accept the project? Why or Why not?
d Annty the momfisumly index criterion. Do you accept the project? Why or Why noll
Firally according to your anowers from section abcd and do you accept or reject the project? Why? Explain your result.
Anply the ceiterion. Do gou sccept the projecr? Why or Why nor? BONLS QUESTION POINTS
The isrigoperaki Co has just paid a cash dividend of $ per share. Investors require a refurn from investment such as this. If the dividend is expected to grow at a rteady per yeet what is the current value of the stock? What will the stock be worth in five years? What would the stock scil for today if the dividend was expected growth at per y car for the ricat ycers and setric down to per year, indefinitely? Points
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