The lunch counter is expanding and expects operating cash flows of $32,500 a year for seven years as a result. this expansion requires $28,000 in new fixed assets. these assets will be worthless at the end of the project. in addition, the project requires $2,800 of net working capital throughout the life of the project. what is the net present value of this expansion project at a required rate of return of 14 percent?

The master manufacturing company has just announced a tender offer for its own common stock. master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. after the announcement of the offer, the stock closed on the nyse up 2.50 at $18.75. a customer has 100 shares of master stock in his cash account. the customer tells you that he wishes to "cash out" his position. you should recommend that the customer: