Question 1:

Adrian expects to save the following amounts: Year 1 = $50k; Year 2 = $28k; Year 3 = $20k. If he can earn an average annual return of 10 percent, how much will he have saved in this account exactly 20 years from the time of the first deposit?

Group of answer choices

706k

619k

834k

905k

1016k

547k

Question 2:

Consider a project with a very HIGH beta.

If you use the WACC as the discount rate for this project, you would be more likely to ______________ the risk and _______________ the NPV of the project.