Question 8 1 Point x D 12.1 The common stock of Manchester & Moore is expected to earn 38 percent in a boom economy, 9 percent in a normal economy, and lose 20 percent in a recession. The probability of a recession is 25 percent while the probability of a boom economy is 45 percent. What is the expected rate of return on this stock? Hint: First find the probability of normal economy. Only Enter the Final Answer in Decimals. Select one of the following: 0.136 0.054 0.148 0.105 0.075 Add your answer Question 9 1 Point x If interest rate is 11%, find the NPV of this project and decide if you should accept or reject it. Year O: CF = -400 Year 1: CF = 100 Year 2: CF = 500 Year 3: CF = -200 A) NPV = -34.54 so Accept B) NPV = -50.34 so Reject C) NPV = 434.54 so Accept (D) NPV = 149.21 so Reject