Project A and project B are two independent projects. Project A has a PI of .98, and Project B has a PI of 1.95. What is your decision regarding the two projects? Select one: a. Project A should be rejected, and project B should be accepted. b. Both Project A and project B should be rejected. c. Both Project A and project B should be accepted. d. Project A should be accepted, and project B should be rejected. Question 2 Answer saved Marked out of 4.00 Flag question A firm is considering the undertaking of a project with CF0= $200,CF1=$75,CF2=$90,CF3=$120. The cost of capital is 15%. What is the approximate IRR for this project? Select one: a. 6.086% b. 15.000% c. 18.355% d. 6.086% Clear my choice Question 1 Answer saved Marked out of 4.00 Flag question A firm is considering an investment proposal that has an initial cost of $25,000 and cash inflows of $10,000 after tax per year for the next 5 years. The discounted cash inflows are valued at $30,000. What is the profitability index of this project? Select one: a. 1.2 b. 2.0 c. 1.0 d. 2.2 Clear my choice Question 4 Answer saved Marked out of 4.00 Flag question Project A requires an initial investment of $20,500, a cash inflow of $15,500 in the first year, and inflows of $10,000 each year for the next 2 years. What is the payback period for this project? Select one: a. 1.5 years b. 2.5 years c. 3.0 years d. 1.32 years Clear my choice Question 5 Answer saved Marked out of 4.00 Flag question You observe that a firm has a beta of 1.25 , the expected return on the market portfolio is 10%, and the risk-free rate of return is equal to 3%. What is the estimated cost of new common equity using the retained earnings of the firm? Select one: a. 10.75% b. 15.5% c. 13.75% d. 11.75%