A company estimates that its required return is 10 percent. Which of the following independent projects should the company accept? Multiple Choice Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200. Project B has a modified internal rate of return of 9.5 percent. Project requires an up-front expenditure of 51.000.000 and generates a positive Internal rate of return of 9.7 percent. O Project D has an intema rate of return of 9. None of the projects ove shou o de accepted Which of the following statements is most correct? Multiple Choice 0 Junk bonds typically have a lower yield to maturity relative to Investment grade bonds. 0 A debenture is a secured bond which is backed by some or all of the firm's bed assets. 0 ) Subordinated debt has less default risk than senior debt. 0 Subordinated debt has less default risk than senior debt 0 None of the statements above is correct Project A has an IRR of 15 percent. Project B has an IRR of 18 percent. Both projects have the same risk. Which of the following statements is most correct? Multiple Choice 0 If the required return is less than 18 percent. Project B will always have a shorter payback than Project A 0 if the required return is 15 percent, the NPV of Project will exceed the NPV of Project A 0 if the required return is greater than 10 percent. Project will always have a shorter payback than Project A 0 if the required return is 10 percent, both projects will have a positive NPV. and the NPVO Project will exceed the NPV of Project 0 If the required increases the RP of oth projects will decine Which of the following statements is most correct? Multiple Choice | o All else equat, la bond's yleld to maturity Increases, Its price will fall. o all else equat. ita dona's ylela to maturity increases. Its current yleid will tau, o it a pong's yield to maturity exceeds the coupon rate, the bond will sell at a premium over o All of the answers above are correct. o - None of the answers above is correct