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The company should undertake Q, S, U. The NPV shows how well the company will do and the IRR shows how much you will get
The company should undertake Q, S, U. The NPV shows how well the company will do and the IRR shows how much you will get return. The combination of these two show that Q.S, and U are the best options because it's getting a combination of both while staying underneath the 18 million. 9. The current stock price for XYZ Inc. is $130. You are bullish on the stock. You have $13,000 to invest. Consider the following two possible investments: (i) Use the $13,000 to buy stocks. (ii) Use the $13,000 to buy call options on XYZ Inc. stock with strike price equal to $130. The premium for this call option (on one share of stock) is $3. a. Suppose the stock price goes up to $140, what is the percentage return on each investment above? (6 points) b. Suppose the stock price goes down to $120, what is the percentage return on each investment above? (6 points)
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