You are evaluating two projects. You may accept only one of them. Project one will cost $379,000 initially and will pay $134,000 each year for the next 5 years. Project two will cost $454,000 initially, but will pay $101,000 for the next 10 years
The firm's cost of capital is 15%. Compute the NPV of each project. Which project has the highest NPV and by how much? Round your answers to the nearest dollar.
A) Project 2 has a higher NPV by $17,293.
B) Project 2 has a higher NPV by $37,636.
C) Project 1 has a higher NPV by $17,293.
D) Project 1 has a higher NPV by $37,636.
E) The two projects have equal NPV.
C
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Which of the following is a difference between apprenticeship and internship?
A. Apprenticeship is on-the-job training, whereas internship is a classroom-based training method. B. Apprenticeship is a unstructured training method, whereas internship is a structured training method. C. Apprenticeship is sponsored by employee unions, whereas internship is sponsored by educational institutions. D. Most apprenticeship programs are for professions like accountants and lawyers, whereas most internship programs are in blue-collar jobs. E. Apprenticeship does not provide an income, whereas internship provides an income while teaching a trade.
What would be the expected price of a stock when dividends are expected to grow at a 25 percent rate for three years, and then grow at a constant rate of 5 percent, if the stock's required return is 13 percent and next year's dividend will be $4.00?
A) $61.60 B) $68.64 C) $79.44 D) $62.08