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motion Status: QUESTION 1 You are considering an investment in a new sub-industry of interest to your firm. The project requires an initial outlay of

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motion Status: QUESTION 1 You are considering an investment in a new sub-industry of interest to your firm. The project requires an initial outlay of S105.000. In addition after-tax cash flows for years one through six will be $45,000 per year. The appropriate discount rate for this project is 10 percent. Your firm is not interested to continue with this project after the 6th year, therefore, at the end of the project's life, the firm is expected to liquidated this project and receive an addition after-tax inflow of S105,000. What is the payback period of this project? O 2.78 years 1.89 years 3.33 years 1.67 years 2.33 years 64 QUESTION 2 You have been provided with the following data: D1 - 54.25, PO - $17.50; and g * 5.50% (conitit). What is the cost of equity from retained carings based on the constant growth model? If your company is going to inse new equity, it will incur an additional Ss notation cout what is the cost of issuing new equity? 26.93%. 28.79% 25.50% 27.24% 21.21% 22.58% 29.79%. 31.909 24.0796 25 69% Save Al AS Close dow Click Save and Submit to save and submit. Chick Save All Amers te se all annars

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