Economic

Do not use excel and have to use formula

8. Assuming the total economic cost or asking price of the business is 300, the project is feasible because of NPV of: a) 232.57 b) 132.57 c) 162.57 d) 432.57 9. If the investment is held at perpetuity, the PV is: a) 1,000 b) 500 c) 800 d) 700 10. The project is feasible at perpetuity if NPV is: a) 600 b) 500 c) 800 d) 700 Assuming the business was being sold with total cash in hand of 120. 11. The PV for a 5-year horizon is: a) 520 b) 552.57 c) 600 d) 800 12. The NPV for a 5-year horizon is: a) 320 b) 420 c) 252.57 d) 352.57 13. The NPV for perpetuity is: a) 720 b) 620 c) 920 d) 820 Assuming the historical average growth rate (g) of profit is 9.36% and a discount rate of 12%, 14. The PV after current profit has been paid out as dividend based on a 5-year investment holding period is : a) 4,970.91 b) 4,411.96 c) 120 d) 558.95 15. The PV before current profit has been distributed as dividend based on a 5-year investment holding period is: a) 678.95 b) 558.95 c) 5090.91 d) 5,531.96 Given total economic cost of 300; 16. The NPV for a 5-year holding period after current profit has been paid out as dividend is: a) 258.95 b) 300 c) 858.95 d) -258.95 17. The NPV for a 5-year holding period before current profit has been paid out as dividend is: a) 120 b) 378.95 c) 678.95 d) 978.95MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. The following table shows the past profits of Company X that has just come for sale to the public this month: Year Profit (in thousands $) 2018 140 2017 130 2016 110 2015 120 2014 100 1. The average profit is: a) 100 b) 110 c) 120 d) 140 2. The median is: a) 120 b) 140 c) 110 d) 100 3. The minimum is: a) 110 b) 120 c) 100 d) 130 4. The maximum is: a) 130 b) 140 c) 120 d) 110 5. The year-to-year growth rates for 2018, 2017, 2016, and 2015 are respectively: a) 7.7%; 18.18%; -8.33%; 20% b) -8.33%; -18.18%; 20%, 7.7% c) 20%; 7.7%; -8.33%; 18.18% d) -8.33%; 18.18%; 10%; 20% 6. The average growth rate is: a) 9.36% b) 3.69% c) 6.93% 10% 7. Using the static approach and assuming a discount rate of 12% and a 5-year investment holding period (n = 5), the present value (PV) of this business is: a) 400 b) 432.57 c) 162.57 d) 492.57 Page 1 of 2