Moving to another question will save this response. Question 1 An investor requires an annual return of 10% on investments. Which of the following statements is not correct? (Assume year-end cash flows and round answers to the nearest 1) O A. An investment of 400 now has a future value of 552 after three years O B. A receipt of 250 after four years has a present value of 171 OC. A receipt of 150 each year for three years has a present value of 373 OD. 50 now has a higher present value than receiving 70 in four years' time O E. A payment of 470 in five years' time has a present value of 292 OF. A receipt of 100 next year has a present value of 91 Question 2 A project has the following cash flows and a payback period of 3.6 years Year 0 1 2 3 5 Cash flows (420) 100 120 140 600 What is the missing cashflow figure for year 42 Question 3 CK15 plc has investment funds of 750 available and has 4 divisible investment projects which cannot be repeated, as follow Project A B D NPV 600 75 150 750 Initial investment 1,500 750 750 2,500 What is the maximum NPV CK15 plc can achieve? Moving to another question will save this response. Question 4 A proposed investment has the following characteristics Initial investment 700,000 Expected scrap value: nil Corporation tax rate Net annual pre-tax cash inflow 140,000 30% Expected life of investment 10 years Discount rate: 13% Capital allowances Straight line basis over the life of the project What is the after-tax net present value of this project? (Round your answer to the nearest hundred pounds and assume tax is paid in the year that profits arise) Question 5 Which of the following statements about market efficiency is false? O A. Weak form tests support the random walk hypothesis O B. Allocational efficiency can be tested by event studies in capital markets O C. Insider trading can produce abnormal returns in a semi-strong form efficient market O D. Weak form efficiency can be investigated by statistical analysis O E. Behavioural finance can help to explain stock market crashes O F. Academics discuss three forms of market efficiency