(1) Out of three explanations, which uses the concept of required rate of return?

1. He plans to invest in a project. He wants at least 10% return from the investment.
2. He plans to invest in a project. He will get at most 10% return from the investment.
3. He plans to invest in a project. He forecasts the return from the investment will be 10%.

(2) Out of three explanations, which uses the concept of internal rate of return?

1. If I invest $1 million, I want to get at least 10% return from the investment.
2. If I invest $1 million, I estimate to get about 10% return from the investment.
3. If I invest $1 million in the project, I estimate to get about 10% return from the investment. Therefore, I will invest in the project.

(3) Which explains the purpose of CAPM (capital asset pricing model)?

1. To estimate a companys cost of debt
2. To estimate an internal rate of return of an investment opportunity
3. To estimate a companys cost of equity