The cash flows associated with an investment project are as follows: Cash Flow Initial outflow -$65000 Year 1 $20000 Year 2 $30000 Year 3 $30000 Year 4 $30000 What is the discounted payback period of the project and should the project be accepted, or rejected, if a four-year cut-off period is mandated? The discount rate is 15%. Select one: a. 2.7 years; accept b. 3.6 years; accept C. 3.3 years; accept d. 3.6 years; reject In the equation below, what does $100 represent? $75.13 = $100/(1 + 0.1) Select one: a. The future value of a cash flow to be received at a later date b. The number of periods before the cash flow is to be received C. The present value of a cash flow to be received at a later date d. The discount rate for the future cash flow The cash flows associated with an investment project are as follows: Cash Flow Initial outflow -$65000 Year 1 $20000 Year 2 $30000 Year 3 $30000 Year 4 $30000 What is the discounted payback period of the project and should the project be accepted, or rejected, if a four-year cut-off period is mandated? The discount rate is 15%. Select one: a. 2.7 years; accept b. 3.6 years; accept C. 3.3 years; accept d. 3.6 years; reject National Bank offers a term deposit paying 8% interest (compounded annually). If you invest $5000, how much will you have at the end of year 6? Select one: a. $6,403 b. $7,934 C. $713 d. $5,801 Using the information provided below, calculate the expected return Outcome Probability Return Recession 20% -25% Expansion 35% 15% Boom 45% 60% Select one: a. 52.5% b. 27.25% c. 33.33% d. 16.67% You are offered a security that will pay you $4000 at the end of each year forever. If your discount rate is 10%, what is the most you are willing to pay for this security? Select one: a. $26 686 b. $31 250 c. $40 000 d. $62 500