Projects X and Y are equally risky, mutually exclusive, and have normal cash flows. Project Y has an IRR of 12%, while Project X's IRR is 8%. The two projects have the same NPV when the WACC is 4%. Which of the following statements is CORRECT?

Group of answer choices

If the WACC is 3%, Project Y will have the higher NPV; therefore you will accept Project Y.

If the WACC is 10%, Project Y will have the lower NPV; therefore you will accept Project X.

If the WACC is 7%, both projects will have a negative NPV; therefore neither will be accepted.

If the WACC is 5%, Project Y will have the higher NPV; therefore you will accept Project Y.

If the WACC is 6%, both projects will have positive NPVs; therefore both of the projects will be accepted.

You were recently given the information that WinterIsComing Inc.s stock prices will decrease below the current stock price level of $10. And accordingly, you purchase a put option on WinterIsComing Inc.s stock, with an exercise price of $9 and a premium of $2 per share. Just before the expiration, stock price falls down to $5. Should you exercise the put option? What will the total payoff per share be?

Group of answer choices

Exercise; Total Payoff per share is $2 gain

Exercise; Total Payoff per share is $3 gain

Exercise; Total Payoff per share is $3 loss

Do not exercise; Total Payoff per share is $2 loss.

Do not exercise; Total Payoff per share is $5 loss.