I. Project A costs $20,000 and has a positive CF of $30,000 one year later. P costs $100,000 and has a positive CF of $130,000 one year l Project B incremental IRR? ater. What is the A. 25% B. 30% C. 40% D. 50% 2. If it is possible to consistently earn abnormal profits based on fundamental analysis, you can conclude that the market is A. Weak form efficient B. Not semi-strong-form efficient C. Semi-strong-form efficient D. None of the above are correct variance 3. A portfolio of 40 stocks will have a variance/covariance matrix with cells and covariance cells. A. 1600, 40 B. 40, 1600 C. 1560, 40 D. 40, 1560 4. A project requires an immediate initial investment of $100,000. It produces a positive cash flow of $5,000 per year in perpetuity starting at the end of the first year. What is the internal rate of return (IRR) of this project? A. 0.5% B. 5.0% C. 50% D. It can't be calculated 5. Which of the following statements is false as it relates to free cash flow? A. It should be discounted at the company's WACC B. Interest payments to the firm's bondholders should never be subtracted from revenues C. When you depreciate, depreciation should be subtracted from revenues and then added back after taxes are subtracted D. Money that you won't actually receive, but would have received if you didn't do the project should not be counted as cash flow