Consider the capital budgeting decision to be made with the following data about 2 competing projects. Project A has an NPV of $250, and IRR of 2% and a payback period of 3 years. Project B has an NPV of -$1000, but an IRR of 3% and a payback period of 2 years 10 months. Which project(s) would be chosen on an independent basis? Select one: O a. Project B o b. Neither Project A nor Project B o c. Project A O d. Project A and Project B What information is NOT usually contained in a prospectus for an IPO? Select one: O a a. A competitive industry analysis. b. Accounting information. . c. A description of the management team. o d. Share price history. Peter has an inheritance that promises to pay him 11 year-end amounts of $5,000 starting exactly 3 years and 3 months from today. If he earns 4.2% p.a., how much is the inheritance worth in present-day dollars? Select one: o a. $41,154.33 o O b. $39,502.38 c. $37,910.15 d. $42,258.17 Which of the following strategies would be most suitable for bond investors in a market of rising interest rates Select one: a. only invest in bonds with short terms to maturity. . o b. sell short term bonds and buy long term bonds with the proceeds. c. only invest in bonds with high yields to maturity. d d. increase the total amount of funds invested in bonds. O O What is one advantage of using the Payback Period Analysis method for capital budgeting decisions? Select one: a. It doesn't require so many inputs to be estimated and hence a more accurate outcome will follow. O b. It is intuitive and easy to explain to non-financial stakeholders such as managers, c. It can be shown that it better correlates with the internal rate of return, which is the true measure that should be taken. d. It provides an indication of the optimal strategy to maximising the wealth of the company. O O