1. What does the return that shareholders require on their investment in the firm represent for the firm?
2. Compute the present value of $4,400 paid in two years using the following discount rates: 9 percent in the first year and 8 percent in the second year
3. What is the npv of $600 received for the next four years and $1,500 received at the end of the fifth year if you required return is 10%?