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16, The assets oruptown sures are cumenty worth S346000. These assets are expected to be worth either $320,000 or $365,000 one year from now. The

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16, The assets oruptown sures are cumenty worth S346000. These assets are expected to be worth either $320,000 or $365,000 one year from now. The company has a pure discount bond outstanding with a $350,000 face value and a maturity date of one year The risk-free nte is 3.9 percent. What is the value of the oquity in this fim? A)$12,671 B)$10,015 $9915 D) $9,507$11,347 Westem Industrial Products is considering a project with a life of four years, a discount rate of 14.7 percent, and an initial cost of $268,000. The project is expected to produce sales of 2,100 units on the last day of each year. The cash Blow per unit is $S0. The firm will have the option to abandon the assets could be sold for an estimated $225,000. The firm should abandon the peoject immediately following the sales on the last day of the first year if the expected level of annual sales, starting with Year 2, fallst. -units or less. Ignore taxes. project after one year at which time the project's A) 1,922 units 8) 2,100 units C 1,961 units D) 1,667 units E 2,034 units western Shores isconsidering project th. hasan initial oot today diim ne project has a two-year life with cash inflows of $7,400 a year. Should the fiem opt to wai one year to commence this project, the initial cost will increase by 4 percent and the cash inflows will increase to applicable discoust rate is 9.5 percen? tn $3.900 a year. what l the value ofthe ogeie bow ifthe n$373 63 C)$182.67 21.56 E)530393 19) Which one of these is most equivalent to r i -12 718288 19) D 12.718288 D 12.7182R 20) In the Black-Scholes option peicing formula, Ndh) is the probability that a standardized, 20) nomaly distributed random variable is: A) equal to 1. 8) less than or equal to dy C) less than l D) equal to di E)less than or cqual to N(d)

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