Please answer the questions with an explanation, thank you!

1. J&J Enterprises is considering an investment that will cost $318,000. The investment produces no cash flows for the first year. In the second year, the cash inflow is $47,000. This inflow will increase to $198,000 and then $226,000 for the following two years, respectively, before ceasing permanently. The firm requires a 15.5 percent rate of return and has a required discounted payback period of three years. Should the project be accepted? Why or why not? A. accept; The discounted payback period is 2.18 years.

B. accept; The discounted payback period is 2.32 years. C. accept; The discounted payback period is 2.98 years. D. reject; The discounted payback period is 2.18 years. E. reject; The project never pays back on a discounted basis.

2. Bond S is a 4 percent coupon bond. Bond T is a 10 percent coupon bond. Both bonds have 11 years to maturity, make semiannual payments, and have a yield-to-maturity of 7 percent. If interest rates suddenly rise by 2 percent, what will the percentage change in the price of Bond T be? A. -15.16 percent B. -14.87 percent C. -13.56 percent D. -12.92 percent E. -12.67 percent

3. Fixed Appliance Co. wishes to maintain a growth rate of 8 percent a year, a constant debt-equity ratio of 0.34, and a dividend payout ratio of 52 percent. The ratio of total assets to sales is constant at 1.3. What profit margin must the firm achieve?

A. 13.92 percent

B. 14.46 percent

C. 14.97 percent

D. 15.33 percent

E. 15.74 percent

4. Beach Wear has current liabilities of $350,000, a quick ratio of 1.65, inventory turnover of 3.2, and a current ratio of 2.9. What is the cost of goods sold? A. $980,000 B. $1,060,000

C. $1,200,000

D. $1,400,000

E. $1,560,000