QUESTION 15 A company has net income of $842,000. The firm pays out 35 percent of the net income to its shareholders as dividends. During the year, the company sold $57,000 worth of common stock. What is the cash flow to stockholders? O $237,700 $233,700 $229,700 $225,700 $221,700 QUESTION 16 A company is analyzing a project and has determined that the initial cost will be $810,000 and the required rate of return needs to be 13.4 percent. The project has a 60 percent chance of success and a 40 percent chance of failure. If the project fails, it will generate an annual after-tax cash flow of $172,000. If the project succeeds, the annual after-tax cash flow will be $315,000. The company has further determined that if the project fails, it will shut the project down after the first year and sell the equipment for the after-tax salvage value of $204,000. If however, the project is a success, the company can expand it with no additional investment and increase the after-tax cash flow to $350,000 a year for Years 2-5. At the end of Year 5, the project would be terminated and have no salvage value. What is the expected net present value of this project at Time 07 O $45,037.53 O $54,094.31 O $63,601.09 O $73,107.87 O $82,614.65