Question 1)

A project has the following details:

Cost = $1000

Cash Flows = $300 for five (5) years

Cost of Capital (WACC) = 12.4800%

What is the NPV for this project?

Group of answer choices

$68.70

$137.24

$75.59

$95.50

$166.90

Question 2)

A company has decided to follow the residual payout policy to set its dividend this year.

Their capital budget is expected to be $8,500,000

The target capital structure is 65% Debt

Their Net Income is $4,565,900

What is the expected Dividend Payout Ratio?

Group of answer choices

34.8431%

60.6667%

35.0000%

33.3333%

0.0000%