Barkley Moving is considering a line of moving vans. Barkley can either purchase new vans that will produce $80,000 per year for seven years, or used vans that will produce $50,000 per year for seven years. The new vans have a purchase price of $500,000 and they can be salvaged at the end of seven years for $300,000. The used vans cost $200,000 and have no salvage value. Which project has the higher IRR? If the cost of capital is 8.5%, which project has the higher NPV? Which project should Barkley choose? IRR new > IRR used; NPV used > NPV new; choose new O IRR used > IRR new; NPV new > NPV used; choose used IRR new > IRR used; NPV used > NPV new; choose used O IRR used > IRR new; NPV new > NPV used; choose new The stock of Shabbona Corp. has an expected return of 11%. The expected market risk premium is 10% and the risk-free rate is 1%. What do you know about Shabbona's beta? Beta is negative Beta is 1 Beta is o O Beta is more than 1 Grillerz BBQ is financed 30% with equity and 70% with debt. Last year, Grillerz paid $12,500 in interest payments to debt holders and $10,000 in dividends to common stockholders. Due to a fire at the warehouse, gross profits are only expected to be $15,000. Assuming Grillerz has no other sources of cash and no changes to capital structure, which group(s) is(are) most likely to receive a lower payout than last year? Both groups will receive a lower payout O Neither group will receive a lower payout O Debtholders Common stockholders