QUESTION 26 What is the Net Present Value of the following cash flow streams at an interest rate of 8.25% : at year 0: $0; year 1: $75; year 2: $225; year 3: $0; and year 4: $300.$_________. QUESTION 27 A stock is expected to return 10% in a normal economy, 15% if the economy booms, and lose 6% if the economy moves into a recessionary period. Economists predict a 55% chance of a normal economy, a 14% chance of a boom, and a 31% chance of a recession. The expected return on the stock is __________96. QUESTION 28 Sue purchased a stock for $45 a share, held it for one year, received a $2.34 dividend, and sold the stock for $46.45. What nominal rate of return did she earn? 96