13. An international company is considering buying one of the two local companies, Company A and Company B. Both local companies cost the interational company S450 million. The projected cash flows from the two local companies are as follows: Projected Cash Flow in million At end of year Company A Company R 1 S120 530 2 S120 $130 S130 S200 4 S140 S200 If the opportunity cost of capital is 7% which of the following is TRUE? A. The international company should buy Company A. B. The international company should buy Company B. C. The international company should buy either Company A or Company B, it makes to difference. D. The international company should not buy either of the companies. 14. ABCD Bank is offering a loan with the following terms: Loan Amount: $50,000 Monthly repayment amount: $4,820 at end of month for 12 months) Which of the following is closest to the annual percentage rate (APR) of the loan? A 5.60% B. 6.22% C 6.72% D. 7.78% 15. An investment has the following rates of return: 1-Year 20 Year 3rd Year 4 Year Return 15% -15% Which of the following is closest to the geometric average annual return of the investment? A 6.58% B. 7.50% C 15.00% D. 29.03%