QUESTION 1

1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%.                         

    Calculate discounted payback for proposal 2

   Years	Proposal 1- $	Proposal 2- $
   0	(40,000)	(64000)
   1	18000	10000
   2	24000	32000
   3	32000	19000
   4	11000	25000

0.5 points   

QUESTION 2

1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%.                         

    Calculate IRR for proposal 2

   Years	Proposal 1- $	Proposal 2- $
   0	(40,000)	(64000)
   1	18000	10000
   2	24000	32000
   3	32000	19000
   4	11000	25000

0.5 points   

QUESTION 3

1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%.                         

    Calculate IRR  for proposal 1

   Years	Proposal 1- $	Proposal 2- $
   0	(40,000)	(64000)
   1	18000	10000
   2	24000	32000
   3	32000	19000
   4	11000	25000

0.5 points   

QUESTION 4

1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%.                         

    Calculate payback for proposal 1

   Years	Proposal 1- $	Proposal 2- $
   0	(40,000)	(64000)
   1	18000	10000
   2	24000	32000
   3	32000	19000
   4	11000	25000

0.5 points   

QUESTION 5

1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%.                         

    Calculate profitability index for proposal 1

   Years	Proposal 1- $	Proposal 2- $
   0	(40,000)	(64000)
   1	18000	10000
   2	24000	32000
   3	32000	19000
   4	11000	25000

0.5 points   

QUESTION 6

1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%.                         

    Calculate profitability index for proposal 2

   Years	Proposal 1- $	Proposal 2- $
   0	(40,000)	(64000)
   1	18000	10000
   2	24000	32000
   3	32000	19000
   4	11000	25000

0.5 points   

QUESTION 7

1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%.                         

    Calculate payback for proposal 2

   Years	Proposal 1- $	Proposal 2- $
   0	(40,000)	(64000)
   1	18000	10000
   2	24000	32000
   3	32000	19000
   4	11000	25000

0.5 points   

QUESTION 8

1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%.                         

    Calculate discounted payback for proposal 1

   Years	Proposal 1- $	Proposal 2- $
   0	(40,000)	(64000)
   1	18000	10000
   2	24000	32000
   3	32000	19000
   4	11000	25000

0.5 points   

QUESTION 9

1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%.                         

    Calculate NPV for proposal 2

   Years	Proposal 1- $	Proposal 2- $
   0	(40,000)	(64000)
   1	18000	10000
   2	24000	32000
   3	32000	19000
   4	11000	25000

0.5 points   

QUESTION 10

1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%.                         

    Calculate NPV for proposal 1

   Years	Proposal 1- $	Proposal 2- $
   0	(40,000)	(64000)
   1	18000	10000
   2	24000	32000
   3	32000	19000
   4	11000	25000

0.5 points   

QUESTION 11

1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows.  The discount rate associated with both the projects is 12%. Write that which proposal is    better on the basis of  profitability index . Write only 1 or 2

   Years	Proposal 1- $	Proposal 2- $
   0	(40,000)	(64000)
   1	18000	10000
   2	24000	32000
   3	32000	19000
   4	11000	25000

1 points   

QUESTION 12

1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%. Write that which proposal is    better on the basis of  payback. Write only 1 or 2

   Years	Proposal 1- $	Proposal 2- $
   0	(40,000)	(64000)
   1	18000	10000
   2	24000	32000
   3	32000	19000
   4	11000	25000

1 points   

QUESTION 13

1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%. Write that which proposal is    better on the basis of NPV. Write only 1 or 2

   Years	Proposal 1- $	Proposal 2- $
   0	(40,000)	(64000)
   1	18000	10000
   2	24000	32000
   3	32000	19000
   4	11000	25000

1 points   

QUESTION 14

1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows.  The discount rate associated with both the projects is 12%. Write that which proposal is    better on the basis of  discounted payback. Write only 1 or 2

   Years	Proposal 1- $	Proposal 2- $
   0	(40,000)	(64000)
   1	18000	10000
   2	24000	32000
   3	32000	19000
   4	11000	25000

1 points   

QUESTION 15

1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows.  The discount rate associated with both the projects is 12%. Write that which proposal is    better on the basis of  IRR. Write only 1 or 2

   Years	Proposal 1- $	Proposal 2- $
   0	(40,000)	(64000)
   1	18000	10000
   2	24000	32000
   3	32000	19000
   4	11000	25000

1 points   

QUESTION 16

1. Single company Risk analysis

   Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate expected return for company B

   possible outcome	probability	Rate of return
   		Company A (%)	Company B (%)
   Boom	0.3	50	30
   Normal	0.4	25	20
   recession	0.3	-10	15

0.5 points   

QUESTION 17

1. Single company Risk analysis

   Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate Variance for company A

   possible outcome	probability	Rate of return
   		Company A (%)	Company B (%)
   Boom	0.3	50	30
   Normal	0.4	25	20
   recession	0.3	-10	15

    

0.5 points   

QUESTION 18

1. Single company Risk analysis

   Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate Variance for company B

   possible outcome	probability	Rate of return
   		Company A (%)	Company B (%)
   Boom	0.3	50	30
   Normal	0.4	25	20
   recession	0.3	-10	15

    

0.5 points   

QUESTION 19

1. Single company Risk analysis

   Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate Standard Deviation for company A

   possible outcome	probability	Rate of return
   		Company A (%)	Company B (%)
   Boom	0.3	50	30
   Normal	0.4	25	20
   recession	0.3	-10	15

0.5 points   

QUESTION 20

1. Single company Risk analysis

   Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate Standard Deviation for company B

   possible outcome	probability	Rate of return
   		Company A (%)	Company B (%)
   Boom	0.3	50	30
   Normal	0.4	25	20
   recession	0.3	-10	15

0.5 points   

QUESTION 21

1. ---

   Single company Risk analysis

   Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate Coefficient of variation for company A.

   possible outcome	probability	Rate of return
   		Company A (%)	Company B (%)
   Boom	0.3	50	30
   Normal	0.4	25	20
   recession	0.3	-10	15

    

0.5 points   

QUESTION 22

1. Single company Risk analysis

   Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate expected return for company A.                                                                              

   possible outcome	probability	Rate of return
   		Company A (%)	Company B (%)
   Boom	0.3	50	30
   Normal	0.4	25	20
   recession	0.3	-10	15

0.5 points   

QUESTION 23

1. Single company Risk analysis

   Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate Coefficient of variation for company B

   possible outcome	probability	Rate of return
   		Company A (%)	Company B (%)
   Boom	0.3	50	30
   Normal	0.4	25	20
   recession	0.3	-10	15

    

0.5 points   

QUESTION 24

1. Single company Risk analysis

   Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Decide which company is better to invest in on the basis of Standard deviation. (Wrire your answer as A or B). 

   possible outcome	probability	Rate of return
   		Company A (%)	Company B (%)
   Boom	0.3	50	30
   Normal	0.4	25	20
   recession	0.3	-10	15

1 points   

QUESTION 25

1. Single company Risk analysis

   Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Decide which company is better to invest in on the basis of expected return. (Wrire your answer as A or B). 

   possible outcome	probability	Rate of return
   		Company A (%)	Company B (%)
   Boom	0.3	50	30
   Normal	0.4	25	20
   recession	0.3	-10	15

1 points   

QUESTION 26

1. Single company Risk analysis

   Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Decide which company is better to invest in on the basis coefficient of variation. (Wrire your answer as A or B). 

   possible outcome	probability	Rate of return
   		Company A (%)	Company B (%)
   Boom	0.3	50	30
   Normal	0.4	25	20
   recession	0.3	-10	15

1 points   

QUESTION 27

1. Single company Risk analysis

   Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Decide which company is better to invest in on the basis of Variance.  (Wrire your answer as A or B). 

   possible outcome	probability	Rate of return
   		Company A (%)	Company B (%)
   Boom	0.3	50	30
   Normal	0.4	25	20
   recession	0.3	-10	15

1 points   

QUESTION 28

1. Stock X has a 10% expected return, a beta coefficient of 0.8, and a 25% standard deviation of expected returns. Stock Y has a 14.6% expected return a beta coefficient of   1.4, and a 25% standard deviation. The risk-free rate is 6%, and the market risk premium     is 5%.  Calculate coefficient of variation for second stock.

1 points   

QUESTION 29

1. Stock X has a 10% expected return, a beta coefficient of 0.8, and a 25% standard deviation of expected returns. Stock Y has a 14.6% expected return a beta coefficient of   1.4, and a 25% standard deviation. The risk-free rate is 6%, and the market risk premium     is 5%.  Calculate coefficient of variation for first stock.