Question 58 2 pts Which one of the projects O, M, N, L should be selected? The expected return on the market is 16% and the risk-free rate is 6%. O Project O, which has a beta of 0.50 and has an expected return of 11.1%. O Project L, which has a beta of 1.00 and has an expected return of 15.9%. O Project M, which has a beta of 2.50 and has an expected return of 29.4%. O Project N, which has a beta of 1.25 and has an expected return of 18.3%.Question 57 2 pts Buchanan Company currently sells 4,000 units of product Q for $1 each. Capacity is 5,000 units. Variable costs are $0.40 and avoidable fixed costs are $400. A chain store has offered $0.80 per unit for 2,000 units of Q. If Buchanan accepts the order, the change in income will be a $160 increase. O $240 increase. $60 decrease. $200 increase. O $80 decrease. $480 increase.Question 2 2 pts The following activity and cost data that were provided by Hoist Corporation would help in estimating its future maintenance costs: Units Maintenance cost 3 P1,350 7 P1,590 11 P1,920 15 P2,100 Using the least squares regression method to estimates the cost formula, the expected total cost for an activity level of 10 units would be closest to: O P1,808.50 O P1,804.50 P1,787.52 P1,837.50 P1,745,46 P1,799.25Question 4 2 pts FCB Industries is evaluating two projects based on the discounted payback method. The company's cost of capital is 12%. Project A is deemed to be of average risk, but Project B has a very high risk profile. The company has decided to adjust the discount rate by 2% for Project B. The investments and operating cash flows follow: Project A Project B Investment ($5,000) ($6,000) Cash flows $2,500 $3,000 N $2,000 $2,250 $1,500 $1,750 4 $1,000 $1,500 Calculate the discounted payback period for Project B O 3.81 years O 3.10 years O 3.15 years O 3.69 years O 3.51 years O 3.48 years O 2.43 years O 3.30 yearsQuestion 5 2 pts An analyst at Stoneville Corporation estimates that a project has the following after-tax net cash ows: Cash Flows By Year Year Net Cash Flows 0 500,000) 1 170,000 2 180,000 3 170,000 4 80,000 5 50,000 6 50,000 If the company's cost of capital is 12%, the project's discounted payback period [5 closest to: O 1.73 years 0 4.48 years 0 4.18 years 0 5.82 years 0 3.73 years 0 5.02 years 0 4.02 years 0 5.18 years