1.Which form of efficient market asserts that asset prices fully reflect all information, which includes both public and private information?

A.Weak-form efficient

B.Strong-form efficient

C.Semi-strong efficient

2.The estimated value added of a project, which we calculate as the sum of the present value of all future after-tax incremental cash flows generated by an initial cash outlay, less the present value of the investment outlays, is best described as the:

A.capital profit

B.normal profit

C.economic profit

D.net present value

3. Which of the following should be considered when performing a cash flow analysis of a new project?

A.Sunk costs.

B.Externalities.

C.Financing costs.

D.Opportunity costs.