The return on shares of Fast Transportation Company is predicted under the following various economic conditions: Recession -0.17 Normal 0.09 Boom 0.24 Each economic state has the same probability of occurring (33.33%). Which of the following answers is closest to the expected return of the stock?

		0.09
		0.16
		0.017
		0.053

Which of the following comes closest to the net present value (NPV) of a project whose initial investment is $50 and which produces a stream of cash flows of $10 that come at the end of each year for 5 consecutive years beginning in 5 years (that is, no cash flow is produced in years 1,2,3,4, or 5)? The required rate of return is 5%?

		$27.22
		-$16.08
		$0.76
		-$6.71

A project requires new machinery costing $20 million today that will last for five years and will be depreciated straight-line to a value of zero at the end of year five. The new machine is expected to produce project inflows of $30 million per year and project outflows of $15 million per year, both beginning one year from today for five consecutive years. Assuming a tax rate is 28% and a required rate of return of 10%, which comes closest to the projects NPV?

		$39.60
		$10.02
		$11.92
		$25.19