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Question 5 (1 point) Project WIN has the following cash flows (and has an average risk): - 1125 CH C2 C3 +350 +400 +500 C4

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Question 5 (1 point) Project WIN has the following cash flows (and has an average risk): - 1125 CH C2 C3 +350 +400 +500 C4 +115 If the WACC (weighted average cost of capital) is 12% then you would: Accept the project Reject the project Can't decide Need more data Question 6 (1 point) NPVs (Net Present Value) of three projects A, B and C are as follows: NPV(A) = +100; NPV(B) = + 150 NPV(C) = -50 If the(projects are "mutually exclusive" projects which of the following is true? Accept A and B only Accept B only Accept A only Accept all projects Question 7 (1 point) NPVs (Net Present Value) of three projects A, B and C are as follows: NPV(A) = +100; NPV(B) = + 150 NPV(C) = -50 If the(projects are "dependent" projects which of the following is true? Accept B only Accept all of them Accept A only Accept A and B only Question 8 (1 point) Project Michigan has the following cash flows: YEAR 0 1 2 CASHFLOW (6,000)_4,500 18000 The NPV (Net Present Value) of the project at 50% discount rate is: $8,000 Zero $5,000 $4,500

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