(8 marks) Silky Smooth Studio (SMS) is considering investing in a movie project The expected cash flows of the project are given in the table below Year 0 1 2 3 Cash Flow $100,000 $45,000 $45,000 $45,000 The required return of the project is 12 percent Using Net Present Value as the decision criterion, should SMS invest in this movie Explain carefully (5 marks) What is the discounted payback period of this project (12 marks) In the article entitled Financial Journalism, Conflicts of Interest and Ethics A Case Study of Hong Kong', the author uses the social contract approach to examine issues related to ethical responsibility in financial journalism Briefly describe the meaning of the three ethically questionable practices raised by the author, namely market manipulation, insider trading, and nondisclosure of interests, as they apply to journalism (6 marks) Do you think it is unethical for a journalist to report on a stock or security that he or she owns without disclosing it Justify your answer with reference to the three ethically questionable practices'' mentioned above

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(8 marks) Silky Smooth Studio (SMS) is considering investing in a movie project. The expected cash flows of the project are given in the table

(8 marks) Silky Smooth Studio (SMS) is considering investing in a movie project. The expected cash flows of the project are given in the table below.

Year	0	1	2	3
Cash Flow	-$100,000	$45,000	$45,000	$45,000

The required return of the project is 12 percent.

Using Net Present Value as the decision criterion, should SMS invest in this movie? Explain carefully. (5 marks)

What is the discounted payback period of this project?

(12 marks) In the article entitled Financial Journalism, Conflicts of Interest and Ethics: A Case Study of Hong Kong', the author uses the social contract approach to examine issues related to ethical responsibility in financial journalism.
1. Briefly describe the meaning of the three ethically questionable practices raised by the author, namely market manipulation, insider trading, and nondisclosure of interests, as they apply to journalism. (6 marks)

Do you think it is unethical for a journalist to report on a stock or security that he or she owns without disclosing it? Justify your answer with reference to the three ``ethically questionable practices'' mentioned above.