Problems:

Refer to Luther Income Statement and Balance Sheet on pages 13 and 14 for the next question.

1. If on December 31, 2008, Luther has 8 million shares outstanding trading at $15 per share, then what is Luther's enterprise value?

Use the table for question #2 below.

Project	Cash flow today	Cash flow in one year
"alpha"	-18	23
"beta"	15	-12
"gamma"	15	-20
"delta"	-16	21

2. Assume that the risk-free interest rate is 10%. Rank each of the four projects from most desirable to least desirable based upon NPV. Which project would you invest in first? Are there any projects that you wouldn't invest in?