Hey, there are a few practice questions I'm trying to get right and understand for an upcoming midterm... This will not be submitted, the professor posted this on canvas and said we'd answer it in class in a few days-- but I'd like to practice ahead of time...

The questions are:

a) Someone works for a firm that owns and operates five car dealerships.The chief investment officer suggests that the firm should buy gold as an investment because he read in the paper that the demand for gold is expected to go up significantly in the future.Would it be expected that this to be a value enhancing investment?Explain!

b) Explain what the pure play approach is and discuss when this tool should be applied.

c) Since projects A and B are mutually exclusive, equal size (scale), and the MIRR of project A is greater than the MIRR of project B it is clear that project A should be selected.Agree or Disagree?Why?

Anything would suffice! Thank you!!