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Please help me answer the following questions! 33) The interest rate of a one year security in the United 36) What is the Modified IRR

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Please help me answer the following questions!

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33) The interest rate of a one year security in the United 36) What is the Modified IRR of Project 2 Broke Girls? States is 4.5%, while the interest rate on a one year A) 13.10% security in Germany is 10.5%. If the current exchange BJ 17.84% rate is C1=$1.50, then the future exchange rate in C) 22.55%% one year according to the international Fisher effect D) 29.33% is? E) 40.58% A) (1 50.7049 B) (1 $1 4186 Answer: C) (1=$1.5000 D) (1 $1.5675 37) What is the Modified IRR of Project Terra Nova? E) (1 $1.5861 AJ -10.84% B) -5.81% Answer C) 11.85% D) 12.15% Chapter 10 E) 12.37% Use the information below for questions 35-44. Answer: _ You work for a TV network and have been given the following four projects. All numbers below are in millions 38) When using the Internal Rate of Return for Project with Year 0 representing today. Your firm's required rate Whitney which of the following is true? of return is 12% per year. Note Project 2 Broke Girls has A) We should take on Project Whitney since its IRR is no cash flows in year 4. 12.0% which is the same as our required rate of return Project 2 Project B) We should reject Project Whitney since its IRR is Project Broke Terra Project Prject 11.59% which is below our required rate of Revenge Girls Nova Whitney Grimm return Year OF OF CF CF CF C) We should reject Project Whitney since its IRR is -$5.5 -$5.5 -$14.5 $7.7 $12.0 12.91%% which is above our required rate of 1 54.4 $3.0 $7.5 $1.1 $6.6 return $3.3 $3.0 $7.5 $2.2 $7.7 3 $2.2 $3.0 -54.0 $3.3 -54.4 D) We should take on Project Whitney since its IRR is $1.1 $7.5 54.4 50.0 12.91%% which is above our required rate of return 34) What is the Net Present Value of Project Revenge? E) We should take on Project Whitney since its IRR is A) $2.96 million 11.55% which is below our required rate of B) $3.32 million return C) $3.61 million D) $4.50 million Answer: E) $5.50 million 39) Your firm only has $17 million to spend on the Answer following investments. Using the profitability index (PI) which projects should we take on? 35) What is the Net Present Value of Project Terra Nova? A) Project Revenge & Project 2 Broke Girls A) 5-3.10 million B) Project Revenge, Project 2 Broke Girls & Project B) $-2.10 million Whitney C) $0.09 million C) Project Revenge & Project Whitney D) $10.10 million DJ Project Terra Nova E) $12 03 million E) Project 2 Broke Girls & Project Terra Nova

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