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    Net Present Value, Equity Multiplier, Expected Return

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    (1) What is the net present value of a project with the following cash flows if the required rate of return is 15 percent?
    Year Cash Flow
    0 -$42,398
    1 13,407
    2 21,219
    3 17,800
    (2) A firm has a debt-to-equity ratio of 0.5. What is the firm's equity multiplier?
    (3) Microsoft's beta is 1. The risk free rate of return is 2%. If the expected return on the market is 12 percent, then the expected return on Microsoft is:

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