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Answer each of the four questions below: (2) A. Risk Premium: An investor requires a 16% return An investment has a 25% chance of failure

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Answer each of the four questions below: (2) A. Risk Premium: An investor requires a 16% return An investment has a 25% chance of failure Determine the Risk Premium required to ensure the investor achieves their 16% return (3) B. Cost of Capital: A company has $2,000,000 in debt The same company has $5,000,000 in equity Their cost of debt is 10% Their cost of equity is 20% What is the company's cost of capital? (at least two decimal places) (3) C. Risk: Which of the following indicates a desirable outcome? a. IRR0 C. NPV

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