Homework answers / question archive / 1) Here are the cash flows for a project under consideration: C0  C1  C2  −$7,800  +$5,700  +$19,800  a) Calculate the project's net present value for discount rates of 0, 50%, and 100%

1) Here are the cash flows for a project under consideration: C0  C1  C2  −$7,800  +$5,700  +$19,800  a) Calculate the project's net present value for discount rates of 0, 50%, and 100%

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1) Here are the cash flows for a project under consideration:

C₀  C₁  C₂ 

−$7,800  +$5,700  +$19,800 

a) Calculate the project's net present value for discount rates of 0, 50%, and 100%. (Round your answers to the nearest whole dollar.)

?b) What is the IRR of the project? (Do not round intermediate calculations. Enter your answer as a whole percent.)

2) Roubecas Corporation just paid a dividend of $3.00 (Do).  The expected growth rate is going to be 20% over the next 4 years (super normal growth).  It will then grow at a normal, consistent rate of 5% for the foreseeable future.  If Ke = 14%, what is Po right now?