(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
(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:
Your tutorial is attached in excel with some explanatory notes.