Questions 31-40 are four (4) points each. Your employer, Kent, LLC, is considering an investment in an office building that has the following cash flows:

Purchase in Year 0 $ -2,750,000

Year 1. 180,000

Year 2.. 276,000

Year 3.. 220,000

Year 4 239,000

Year 5 250,000, and a sale @ $3,190,000 takes place EOY 5

The companys weighted average cost of capital that they use as their discount rate for such calculations is 7%

33. In the above problem, you might expect

a. The Yield to be higher than the discount rate because you sold the property at a profit.

b. The NPV to be positive because the IRR is higher than the discount rate

c. The NPV to be negative because the IRR is lower than the discount rate

d. All of the above

34. The Dow Jones Industrial Average is made up of

a. 10 companies

b. The largest 1,000 companies in the world

c. 30 blue chip companies, not all of which are heavy industrial companies

d. 100 companies with large cap market value