- nother Example ash Flows - Non-conventional Suppose an investment will cost $90,000 initially and will generate the following cash flows: - Year 1: 132,000 - Year 2: 100,000 - Year 3: -150,000 The required return is 15%. Should we accept or reject the project? You are analyzing the stock of XYZ firm where its current stock price is 35%. The firm just paid an annual dividend of 0.105 and it is expected that the dividend will grow at 5% in the coming two years and then increase by 4% per year thereafter. You estimate that the required return of the stock is 10%. Estimated the stock price of XYZ. And, is the stock is fairly, overpriced or underpriced. T T T Arial 3 (12pt) T 25