Calculate the two projects NPVs-IRRs-MIRRs and PIs

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1. A stock price currently sells for $33.50 and it’s required rate of return is 15%. The dividend is expected to increase at a constant rate of 7.50% per year. What is the stocks expected price 5 years from today?

2. Project R has a cost of $ 10,000 and in expected to produce cash flows per year of $ 4,000 for 3 years. Project S has a cost of $20,000 and in expected to produce cash flows of $ 7,000 per year for 4 years. Calculate the 2 projects’ NPVs, IRRs, MIRRs, and PIs, assuming a cost of capital of 11%. Which project should be selected?

Reference no: EM131893179

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