Question 1. A firm is considering a project that will require investments at the end of each year for the next 5 years, but will then generate revenue cash flows of 4.6 at the end of each year into perpetuity. The first investment will cost 5 million and each subsequent investment will increase by 2 million. The first revenue cash flow will occur at the end of year 6. Assuming that the cost of capital is 7%, calculate the NPV of this project, in millions of dollars. The Answer was 11.059

Unanswered 0 / 10 pts Question 9 A portfolio is created by investing in three stocks: Stock A, Stock B, and Stock C. The table below provides the following pieces of information for each stock: (1) The volatility of the stock, (2) the proportion of the portfolio's overall value that is attributed to the stock, and (3) The correlation between the stock's return and the return of the portfolio. Calculate the volatility of the portfolio. Stock A Stock B Stock C Volatility 0.40 0.35 0.25 Proportion 0.45 0.20 0.35 Correlation with 0.65 0.45 0.80 Portfolio Return 0.1792 0.1923 0 0.2054 O 0.2316 Correct Answer O 0.2185