1_If a firm underestimated the risk, that is the opportunity cost of two mutually exclusive projects

A_ all of the other answers are correct

B_the NPV COULD be overestimated

C_ an incorrect positive NPV could be calculated

d_the ranking according to the NPV COULD BE INCORRECT

E_Unacceptable projects could be mistakenly accepted

One variable at a time related to the project are randomly, repeatedly modified using a computer program to develop a very wide range of NPVs, which can then be averaged to give an idea of the expected outcome best describes.

a.simulation analysis

b.breakeven analysis

c.none of other answers are correct

d. sensitivity analysis

e.scenario analysis

3. A bond is currently priced at 105% of the face value. If it pays a coupon of $50 annually and mature in 5 years. What is the yield to maturity?

1.95%

5.25%

3.88%

7.76%

cannot be determined