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11. Project Y has the following cash flows: C1C2 CO $8,000 $4,000 $16,000 The NPV of the project at 40% discount rate is: (Approximately) a

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11. Project Y has the following cash flows: C1C2 CO $8,000 $4,000 $16,000 The NPV of the project at 40% discount rate is: (Approximately) a $16,000 b. $4,000 c zero (d. $3,020 e.none of the given answers 12. [Using data from question -11] The IRR of the project Y is: (Approximately) a 18% b, 24%/c69%) d 100% 13. NPVs of two projectsand B are as follows: e none of the given value NPV(A)=-$80 NPV(B)= + $160 If the projects are mutually exclusive which of the following is true? a. Accept A b. Accept B c. Accept both d. Reject both If the rate of return on the market is 12% (R") and the risk-free rate (RRF) is 4%. then the Market risk premium (RP ) is: 14. a. 4% b. 16% C. 14%( d. 896/ e. None of the given answers 15. From the following data, calculate the operating cash flow (OCF) from the project for year 1: Sales $8,000 Costs$4,000 Depreciation for year-1 Tax rate = 40% $2,000 e.none of the given answers d. $1,980 that a firm has already spent on a project regardless of whether the a $1.200 b. $3,200c. $2,980 taken is called: a. fixed cost b. opportunity cost c. initial cost d. variable cost e.sunk cost 17. The following rate of returns for Stock A: (Historical data) Use this data to answer questions 17 and 18 Year Stock A 201X 201Y 2012 35% 20% -10% Calculate the of returns for Stock A a 10% (b. 15%) C. 18% d, 22% e, none of the given ones 18. The standard deviation of returns for Stock A is: (approximately) 25%(b. 229%) 15% d. 18,7% d, none of the given ones a

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