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Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 8.00% Year 0

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Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 8.00% Year 0 1 2 3 Cash flows $1000 - $500 $500 $500 O a. 2.27 years O b.1.24 years O c. 1.58 years O d. 2.46 years e. 1.47 years Assume that the current corporate bond yield curve is upward sloping. Under this condition, then we could be sure that O a. Inflation is expected to decline in the future. b. Maturity risk premiums could help to explain the yield curve's upward slope. O c. Long-term bonds are a better buy than short-term bonds. O d. Long-term interest rates are more volatile than short-term rates. O e. The economy is not in a recession. a 8 points a Sam was injured in an accident, and the insurance company has offered him the choice of $24,000 per year for 15 years, with the first payment being made today, or a lump sum. If a fair return is 7.5%, how large must the lump sum be to leave him as well off financially as with the annuity? a. $248,236.26 O b.$189,023.94 O c. $234,571.88 d.$227,739.69 O e.S02,688.32 A Moving to the next question prevents changes to this answer. Question 40 of 63

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