Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 14 4 pts Which of the following should be included in the computation of an expansion project's terminal year cash flow? Any change in

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Question 14 4 pts Which of the following should be included in the computation of an expansion project's terminal year cash flow? Any change in net working capital that was included in the initial Investment Cost at time=0 The project's externalities The initial cost of the project The opportunity cost of the project Question 15 4 pts Trimble Lawn mowing bought a new mower for $20,000. The new mower will increase the annual revenues by $100,000, and increase the operating costs by $30,000. Trimble is using straight-line depreciation over a 5-year economic life. If the tax rate is 35%, please calculate the incremental after-tax cash inflow: $44,600 $46,900 $29,700 O $54,500 Question 18 4 pts The total risk associated with an investment can be divided into O Systematic risk and market risk O firm specific risk and unsystematic risk O market risk and firm-specific risk O total risk and firm specific risk Question 19 4 pts The standard deviation of stock 1 is 10%, and that of stock 2 is 20%, and the correlation between them is +0. You have $10,000 invested in these stocks with $2,500 of the money in stock 1 and $7,500 the money in stock 2, please calculate the portfolio standard deviation (Hint: the weight given to stock 1 is 0.25 and the weight given to stock 2 is 0.75) O 15.21% O 22.50% 20.50% 34.50%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Foundations Of Business Analysis

Authors: M Douglas Berg

1st Edition

1465222030, 9781465222039

More Books

Students also viewed these Finance questions

Question

4 What are the main practices associated with SHRM?

Answered: 1 week ago