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4. If you pay SAR 55,000 to buy a car and join UBER or KAREEM and work for 10 months eaming a net profit of

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4. If you pay SAR 55,000 to buy a car and join UBER or KAREEM and work for 10 months eaming a net profit of SAR 27,00 over the entire 10 months. What is your total return (holding period return) if you sel the car after the 10-month period for SAR43,000. a. 27.27% b. 12.21% c. 03.00% d. 33.28% e. 19.04% 5. Your firm is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year Cash flows (SAR) 900 500 500 500 a. 2.52 years b. 2.09 years c. 2.78 years d. 1.88 years 2 e. 2.29 years Assume that interest rates on 20-year Treasury and corporate bonds are as follows: 6. AAA= 8.72% A=9.64% T-bond-7.72% BBB-10.1896 The differences in these rates were probably caused primarily by: a. Inflation differences. b. Tax effects. Default risk differences. c. d Real risk-free rate differences. Maturity risk differences

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