23. Assume the approprlate discount rate for each of the following prolects (1,2,3) Is 7.25% per perlod and the projects are mutually exclusive. Based on NPV, which of the following prolects In management most likely to pursuel Project 1 (100) $ 60 $ 50 $ Project 2 (100) S 50 $ 61 $ Project 3 1=0 $ (100) 1=1 210 (110) 1=2 S a. 1 . " d. I& II e. None of the projects 24. A company estimates an NPV of a project under three different set of assumptions (Bear, Base, Bull) to evaluate forecasting risk; management agrees to undertake the project if the weighted average NPV for the three different scenarios (Bear, Base, Bull) Is positive. Based on the scenario analysis performed, the company will pursue the project. Evaluate the underlined words in italics. True or False? Scenerio NPV Probability (100) 35 65 Bear 30.00% 50.00% 20.00% Base Bull a. True b. False 25. Assume management has found profitable investment opportunities, but lacks the funds to undertake one or more of these opportunities. This situation is most closely related to the concept of: a. Managerial options b. Sensitivity analysis C. Forecasting risk d. Capital rationing e. Opportunity costs