1. Sams Inc. offers you a 5-year project that will cost you $20,000 today, while it will generate $9,000/year for the first 3 years, followed by $1,000/year for 2 years. At most, how many different internal rate of returns could this project have?

a. one b. two c. three d. five

2. Alondra Inc. offers you a project with IRR equals 15%. Which one of the following about the NPV of the project would be correct?

a. NPV would be negative at a discount rate of 10%. b. NPV would be positive at a discount rate of 20%. c. NPV would be negative at a discount rate of 20%. d. NPV would be positive at a discount rate of 15%.

3. Sandlewood Inc. has a project which has a beta of 1.24. As a market analyst, you find the risk-free rate is 3.8% and the market rate of return is 9.2%. Which one of the below is the project's expected rate of return?

a. 15.21% b. 11.41% c. 10.50% d. 14.61%

4. Suppose that you find National Vision Inc. (Ticker: EYE) has the widest dispersion of returns compared to the others in your portfolio. Then National Vision Inc. (EYE) should have the:

a. lowest expected rate of return b. higher standard deviation c. lowest real rate of return d. lowest variance