Stock Z: State Good Bad Ugly Probability 20% Return 2% 50 10 30 15 What is the expected return? 5 percent 9.9 percent 6 percent 4.5 percent Moving to another question will save this response. What is the NPV for a project whose cost of capital is 13 percent and initial after-tax cost is $5,000,000 and is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and $1,300,000 in year 4? $56,399 $137,053 $4,862.947 $371,764 A firm with a cost of capital of 7 percent is evaluating three independent capital projects. The internal rates of return are as follows: Project 1 2 Internal Rate of Return 11% 8 3 The firm should accept Project 2, and reject Projects 1 and 3 accept Project 1, and reject Projects 2 and 3 accept Project 1 and 2, and reject Project 3 accept Project 3, and reject Projects 1 and 2 A firm has determined its cost of each source of capital and the percentage of each source making up the firm's capital structure: Source of Capital Long-term debt Preferred stock Common stock equity Capital Structure Proportions 33.33% 33.33 33.33 After-Tax Cost 3% 4 8 The weighted average cost of capital is 5 percent 7 percent 4 percent 6 percent Keto Electronics common stock is expected to pay $5 in dividends next year and the market price is projected to be $115 in one year. If investors require a rate of return of 5%; what is the current value of the stock? $104.66 $114.28 $96.36 $88.25