Q23 and Q24: You have been offered two contracts. The contracts are mutually exclusives. You estimate the following payoffs of each contract: Year Contract A Contract B 0 $-40,000 S-100,000 $0 $65,000 | 2 $65,000 $65,000 23. What is the crossover rate? A. 5.8% B. 6.7% C. 8.3% D. 9.4% 24. At what range of discount rates (if any) would you accept contract B? A. if discount rate is greater than 19.4% B. if discount rate is less than 19.4% and greater than the crossover rate C. if discount rate is less than the crossover rate D. Always reject 25. Studies of the performance of professionally managed mutual funds find that these funds, on average: A. Do not outperform a market index. Assuming mutual fund managers rely primarily on public information, this finding supports the strong form of the efficient market hypothesis. B. Do not outperform a market index. Assuming mutual fund managers rely primarily on public information, this finding supports the semistrong form of the efficient market hypothesis. C. Outperform a market index. Assuming mutual fund managers rely primarily on public information, this finding refutes the strong form of the efficient market hypothesis. D. Outperform a market index. Assuming mutual fund managers rely primarily on public information, this finding supports the semistrong form of the efficient market hypothesis. 26. You are interested in buying a house that costs $250,000. You have enough savings to make a 5% down payment on the house. The bank has offered you a mortgage rate of 6% compounded semiannually and an amortization period of 20 years. What is the closest monthly mortgage payment if you decided to purchase the house? A. $2,022.89 B. $1,685.12 C. $1,415.45 D. $1,773.81