Part $1.$ If the economy is normal the stock of Flores corporation is expected to return $11$ percent. If the company falls into a recession the stock$$s return is projected at a negative $5$ percent. The probability of a normal economy is $76$ percent. What is the standard deviation of the returns on this stock?

A$.6\mathrm{.}62$

B$.8\mathrm{.}24$

C$.\mathrm{.}24$

D$.4\mathrm{.}91$

E$.12\mathrm{.}35$

Part $2.$ A project has an initial cash outflow of $42250$ and produces cash inflows of $15680,18920,$ and $18520$ for years $1$ through $3$ respectively. What is the NPV at a discount rate of $12$ percent

A$.-108\mathrm{.}19$

B$.229\mathrm{.}09$

C$.186\mathrm{.}95$

D$.219\mathrm{.}41$

E$.15\mathrm{.}08$

Part $3.$ Two mutually exclusive projects have an initial cost of $$47,500$ each. Project A produces cash inflows of $$25,300,$ $$37,100,$ and $$22,000$ for Years $1$ through $3,$ respectively. Project B produces cash inflows of $$43,600,$ $$19,800$ and $$18,600$ for Years $1$ through $3,$ respectively. The required rate of return is $14\mathrm{.}70\%$ percent for Project A and $14\mathrm{.}9$ percent for Project B$.$ Which project$($s$)$ should be accepted and why?

A$.$ Project A because it has the larger NPV$$

B$.$ Project B because it has the larger NPV$$

C$.$ Project B because it has the largest cash inflow in year $1$

D$.$ Project A because it has the higher required rate of return$$

E$.$ Project b because it has the higher required rate of return