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QUESTION 1 Cash flows in Years 1 through 4 per year = $30000, cash flow in Years 5 through 9 per year = $35,000, and

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QUESTION 1 Cash flows in Years 1 through 4 per year = $30000, cash flow in Years 5 through 9 per year = $35,000, and cash flow in last year (year 10) - $40,000. The initial outlay of the project -$150,000. Firm's cost of capital = 10%. Calculate the payback period for this investment? 0423 years 4.86 years O 5.21 years O 6.75 years QUESTION 2 Year Cash Flow 0 -$ 10,000 1 100,000 2 -100,000 Calculate the multiple IRRs based on cash flows given in the above table. O 12.7%, 431.04% O 12.7%, 305.71% O 12.7%, 652.28% O 12.7%, 787.30% QUESTION 4 AAA's stock price - $45/share. There is a call option at a strike price of $40 selling in the market. Meanwhile, a put option at a strike price of $40 is also available. Between the call and the put, which one is more valuablo? = Call option O Put option Equally valuable o Cannot toll from the information as given QUESTION 5 A 6-month put option on AAA stock has a strike price = $20 and sells in the market for 50 25. AAA's current stock price is $28. What is the exercise value of the put option? $8 o 99 $4 O $0 QUESTION 1 Cash flows in Years 1 through 4 per year = $30000, cash flow in Years 5 through 9 per year = $35,000, and cash flow in last year (year 10) = $40,000. The initial outlay of the project =$150,000. Firm's cost of capital = 10%. Calculate the payback period for this investment? 4.23 years 4.86 years O 5.21 years O 6.75 years QUESTION 2 Year Cash Flow 0 -$ 10,000 1 100,000 2. - 100,000 Calculate the multiple IRRs based on cash flows given in the above table. O 12.7%, 431.04% O 12.7%, 305.71% O 12.7%, 652.28% O 12.7%, 787.30%

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