Whether straight-line depreciation or MACRS is used will have no impact on project NPV. Question 38 9 pt Etling Inc's dividend is expected to grow at a rate of 5% for the next 2 years and then at a rate of 3% from that point forward. If the firm has just paid a $2 dividend and the required return is 14%, what is the price of the stock? O $25.15 $23.82 O $19.43 $29.70 O $27.58 Use the following to answer the next two questions: The managers of PonchoParts, Inc. plan to manufacture engine blocks for classic cars from the 1960s era. They expect to sell 250 engine blocks annually for the next 5 years at a sales price of $3,000 per block. The necessary foundry and machining equipment will cost a total of $800,000 and will be depreciated on a straight-line basis to zero over the project's life. The firm expects to be able to sell O Changes in net working capital are not considered incremental cash flows. When fixed assets are sold at the project's end, there are usually no tax consequences for the sale. Financing costs must be included in the cash flows because they are not accounted for elsewhere. Whether straight-line depreciation or MACRS is used will have no impact on project NPV. Question 38 9 pts Etling Inc's dividend is expected to grow at a rate of 5% for the next 2 years and then at a rate of 3% from that point forward. If the firm has just paid a $2 dividend and the required return is 14%, what is the price of the stock? $25.15 O $23.82 $19.43 $29.70 O $27.58 Use the following to answer the next two questions: The managers of PonchoParts, Inc. plan to manufacture engine blocks for classic cars from the 1960s era. They expect to sell 250 engine blocks annually for the next 5 years at a sales price of $3,000 per block. The necessary foundry and machining equipment will cost a total of $800,000 and will be depreciated on a straight-line basis to zero over the project's life. The firm expects to be able to sell the manufacturing equipment for $150,000 at the end of the project. Labor and materials costs total $500 per engine block and fixed costs are $125,000 per year. Assume a 35% tax rate and a 12% discount rate