1.) Virus Stopper Inc., a supplier of computer safeguard systems, uses a cost of capital of 9 percent to evaluate average-risk projects, and it adds or subtracts 3 percentage points to evaluate projects of more or less risk. Currently, two mutually exclusive projects are under consideration. Both have a cost of $ 360 and will last 4 years. Project A, a riskier-than-average project, will produce annual end of year cash flows of $ 101 . Project B, of less than average risk, will produce cash flows of $ 238 at the end of Years 3 and 4 only. To the nearest .01, list the NPV of the higher NPV project. Note, if the NPV is negative, place a - sign in front of your answer. Do not use the $ symbol.

2.) Which of the following amounts is closest to what should be paid for Overland common stock? Overland has just paid a dividend of $0.50. These dividends are expected to grow at a rate of 1.5% in the foreseeable future. The risk of this company suggests that future cash flows should be discounted at a rate of 10.8%. Show your answer to the nearest $.01. Do not use the $ sign in your answer.