Question 3. The following common stocks are available for investment: COMMON STOCK (Ticker Symbol) BETA Nanyang Business Systems (NBS) 1.40 Yunnan Garden Supply, Inc. (YUWHO) 0.80 Bird Nest Soups Company (SLURP) 0.60 Wacho.com! (WACHO) 1.80 Park City Cola Company (BURP) Oldies Records, Ltd. (SHABOOM) 0.90 a. If you invest 20 percent of your funds in each of the first four securities, and 10 percent in each of the last two, what is the beta of your portfolio? b. If the risk-free rate is 8 percent and the expected return on the market portfolio is 14 percent, what will be the portfolio's expected return? Question 4. You are considering a project with an initial cash outlay of $80,000 and expected free cash flows of $20,000 at the end of each year for 6 years. The required rate of return for this project is 10 percent. a. What is the project's payback period? b. What is the project's NPV? c. What is the project's Pl? d. What is the project's IRR ? Question 5. Fijisawa Inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. The initial outlay would be $1,950,000, and the project would generate incremental free cash flows of $450,000 per year for 6 years. The appropriate required rate of return is 9 percent. a. Calculate the NPV. b. Calculate the PL c. Calculate the IRR. d. Should this project be accepted