For the sake of simplicity, assume that in each year, each company reinvests all of its retained earnings into a single investment opportunity, generating annual cash flows in perpetuity at a rate equal to its current return on book equity.

Consider about 2 companies, Apple Inc. and Pfizer Inc.

For each company, consider the investment opportunity available next year (t = 1). Calculate the payback period, internal rate of return, and per share net present value NPV1 of next years investment opportunity. Are these projects worth pursuing?