1. A project has the following cash flows: C₀ = -200,000; C₁ = 50,000; C₂ = 100,000; C₃ = 150,000. If the discount rate changes from 10% to 15%, the CHANGE in the NPV of the project is closest to:

	A.	$23,076 increase
	B.	$23,076 decrease
	C.	$9,667 decrease
	D.	$9,667 increase
	E.	None of the above

2.

Companies A and B are valued as follows:

Both companies are 100% equity financed. Company A now acquires B by offering two (new) shares of A for every three shares of Company B. Suppose that the merger really does increase the value of the combined firms by $18,000. What is the net gain to target shareholders?

	A.	$4,000
	B.	$0
	C.	$17,000
	D.	$1,000
	E.	None of the above