1. Your company needs to decide if they should develop a new product. The probability of success is 70% with a payoff NPV of $1,465. Failure would result in a NPV of $0. What is the NPV of the project?

a. $1,465

b.$1,025.50

c. $439.50

d. none of the above

2. DMV Corporation is considering buying a new machine that would generate additonal operating cash flow of $600,000. Their tax rate is 35%. Depreciation on the machine is $200,000, fixed costs are $100,000, and variable costs are $250,000. What total sales revenue does DMV need to generate to break-even?

a. $615,384

b. 1,165,384

c. $400,000

d. $600,000

3. What is FLS Corporation's December 31, 2022 price earnings ratio if they had net income of $1,500,000 for the year and 5,000,000 common shares outstanding at year-end. Their stock market price per share on December 31, 2022 was $25.50.

a. 30

b. 196

c. 7.65

d. 85