1. DEFG Limited is preparing to pay its first dividend. It is going to pay $0.45, $0.60, and $1 a share over the next three years, respectively. After that, the company has stated that the annual dividend will be $1.25 per share indefinitely. What is this stock worth to you per share if you demand a 10.8 percent rate of return on stocks of this type?

2. investment project has an installed cost of $518,297. The cash flows over the 4-year life of the investment are projected to be $287,636, $203,496, $103,802, and $92,556, respectively. What is the NPV of this project if the discount rate is 0%?

3. An investment project provides cash flows of $100,190 per year for 10 years. If the initial cost is $800,000, what is the payback period?

4. A firm evaluates all of its projects by using the NPV decision rule. At a required return of 14%, what is the NPV for the following project and should the firm accept the project?