Question $3$

Your firm is considering a project that will generate cash flows of $$15,000$ per year, indefinitely. $R=14\%.$ What is the maximum cost of this project for you to accept it using NPV$?$

Question $4$

In FIN$300,$ we learned that the stock price is equal to the present value of all the future dividend payments. Calculate the stock price in this problem:

A stock will pay a dividend of $$3$ share next year. It will grow these dividend payments by $5\mathrm{.}5\%$ year, forever. $R=18\%.$