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Dragon Flights Ltd. is a premium adventure tourism company known for offering high-flying dragon rides across volcanic mountains and ancient kingdoms. To expand its elite fleet, the company is considering the purchase of a new fire-breathing dragon, specially bred for long-haul flights and crowd-pleasing aerial acrobatics.The initial investment required for acquiring, training, and outfitting the dragon is $8.1 million.Based on projected bookings and merchandise sales, the company expects the dragon to generate $1.5 million in net cash flow in its first year of operation. After that, thanks to growing popularity and ticket price hikes, cash flows are expected to grow by 4.55% annually.Dragons in commercial use typically remain flight-worthy for 6 years, after which they retire to the Royal Dragon Preserve. If the cost of capital is 14.13%, what is the Net Present Value (NPV) of this legendary investment? Hint: Enter your answer rounded to two decimal places.

McNamara Hotels has 750,000 bonds outstanding, each with a $1,000 face value and 10 years to maturity. The bonds pay semi-annual coupon payments at an annual coupon rate of 4.60%. Currently, the bonds are trading on the secondary market at $828 per bond. The company has no other debt outstanding.What is the company’s annual cost of debt?Hint: Enter your answer as a percentage rounded to two decimals. Note: this is not an accounting question—I’m not looking for interest expense in dollars.

The cost of capital is ________.

Manta Lasers Co., a mid-sized tech manufacturer specializing in precision laser equipment, has spent the past two years in R&D developing a new, highly efficient industrial laser designed for use in surgical manufacturing and aerospace applications. Based on successful prototype testing and positive early interest from potential clients, the company is now considering moving forward with production.The required upfront investment for production and launch is $1,215,000.Drawing from historical data and market analysis, the firm has forecasted the following annual free cash flows from the project over the next six years (after all operating and capital expenses):Year 1 to Year 6: $200,000, $250,000, $275,000, $300,000, $350,000,  and $400,000. If the company’s cost of capital is 15.05%, what is the Net Present Value (NPV) of this investment? Hint: Enter your answer rounded to two decimal places.

Highland Courier Co. is a premium magical delivery service that specializes in secure, high-speed transport of rare goods—like spell scrolls, enchanted herbs, and royal messages—across the mountainous kingdoms. The company is planning to invest in a new griffin-powered delivery fleet, which will cost $7,850,000 upfront, including training, saddles, and a lifetime supply of enchanted salmon feed.The company projects that the griffin fleet will generate stable annual cash flows of $1,850,000 over the next 6 years, after accounting for all expenses, including griffin care, flight permits, and beak polishing. What is the internal rate of return (IRR) for this investment? Hint: Enter your answer rounded to two decimal places.

McNamara Hotels has 750,000 bonds outstanding, each with a $1,000 face value and 10 years to maturity. The bonds pay semi-annual coupon payments at an annual coupon rate of 9.47%. Currently, the bonds are trading on the secondary market at $1,122 per bond. The company has no other debt outstanding.What is the company’s annual cost of debt?Hint: Enter your answer as a percentage rounded to two decimals. Note: this is not an accounting question—I’m not looking for interest expense in dollars.

Green Elephant Corporation has had an average annual return of [M]%, with a standard deviation of 9.95% over the same period. The estimated risk-free rate is 4.12%.Calculate the Sharpe ratio for Green Elephant’s stock.Hint: Enter your answer rounded to two decimal places.

The ________ is the cost of each financing component multiplied by that component’s percent of the total funding amount.

We listened to an interview with Dr. Dennis Charney where he related an experience that built resilience for him.  He survived an attempted murder when:

Extra Credit Question (2 points possible): In his talk, Tony also mentioned the technique called EMDR.  What does the full acronym EMDR stand for?