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QUESTION 9 A company is considering a project with the following cash flows: Initial Outlay = $250,000 Cash Flows: Year 1 = $95.000 Year 3

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QUESTION 9 A company is considering a project with the following cash flows: Initial Outlay = $250,000 Cash Flows: Year 1 = $95.000 Year 3 = $175,000 Year 5 = $285,000 If the appropriate discount rate is 8.5%, what is the NPV of this project? 218,908.03 190,706.28 210.187.42 187.591.71 164,104.47 QUESTION 10 A Company's perpetual preferred stock sells for $58.75 per share, and pays $5.25 annual dividend. If the company were to issue a new preferred issue, a flotation cost of 7.50% would be paid to the investment bankers. What is the company's cost of issuing new preferred stock? 11.26% 13.20% 9.66% 16.32% 14.70% QUESTION 11

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