5.PGH Inc. is considering a new seven-year expansion project with an initial fixed asset investment of $3.87 million. The fixed asset will be depreciated straight-line to zero over its seven-year tax life, after which time it will be worthless. No bonus depreciation will be taken. The project is estimated to generate $2,103,000 in annual sales, with costs of $1,065,000. The tax rate is 21 percent and the required return is 14.6 percent. What is the net present value of this project?

A) $52,171.66 B) $32,155.56 C) $71,841.16 D) $95,008.04 E) $134,098.28

6. The Market Place is considering a new four-year expansion project that requires an initial fixed asset investment of $1.67 million. The fixed asset will be depreciated straight-line to zero over its four-year tax life, after which time it will have a market value of $435,000. No bonus depreciation will be taken. The project requires an initial investment in net working capital of $198,000, all of which will be recovered at the end of the project. The project is estimated to generate $1,850,000 in annual sales, with costs of $1,038,000. The tax rate is 21 percent and the required return for the project is 16.4 percent. What is the net present value?

A) $241,334.55 B) $451,180.73 C) $254,595.45 D) $302,208.15 E) $358,576.22

8.Which of the following variables will be forecast at their highest expected level under a best-case scenario?

A) Initial cost and variable costs

B) Variable costs and sales price

C) Fixed costs and sales price

D) Fixed costs and units value

E) Salvage value and units sold

13.Which of the following variables will be forecast at their highest expected level under a best-case scenario?

A) Initial cost and variable costs

B) Variable costs and sales price

C) Fixed costs and sales price

D) Fixed costs and units value

E) Salvage value and units sold

23.Which one of these describes an exception to the registration filing requirement of the SEC?

A) Loans of $10 million or less B) Issues that have received an approved letter of comment

C) Loans that mature in one year or less D) Issues of less than $5 million

E) Issues that have an approved prospectus