Finance

Consider the project with the following expected cash flows:YearCash flow0-$400,0001$100,0002$120,0003$850,000If the discount rate is 0%, what is the project’s net present value?

If the discount rate is 2%, what is the project’s net present value?If the discount rate is 6%, what is the project’s net present value?

If the discount rate is 11%, what is the project’s net present value?

With a cost of capital of 5%, what is this project’s modified internal rate of return?

Cold I Industries just paid a dividend of $1.45 per share. The dividends are expected to grow at a 17 percent rate for the next 5 years and then level off to a 5 percent growth rate indefinitely.

If the required return is 15 percent, what is the value of the stock today? please explain this in detail

Cost of Trade CreditIf a firm buys under terms of 1/15, net 45, but actually pays on the 20th day and still takes the discount, what is the nominal cost of its nonfree trade credit? Assume 365 days in year for your calculations. Do not round intermediate calculations. Round your answer to two decimal places.

Solution:

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