Which of the following letter choices are correct for each?

As the degree of sensitivity of a project to a single variable rises, the:

Select one:

a. Lower the forecasting risk of the project.

b. Smaller the range of possible outcomes given a pre-defined range of values for the input.

c. More attention management should place on accurately forecasting the future value of that variable.

d. Lower the maximum potential value of the project.

e. Lower the maximum potential loss of the project.

Including the option to expand in your project analysis will tend to:

Select one:

a. Extend the duration of a project but not affect the project's net present value.

b. Increase the cash flows of a project but decrease the project's net present value.

c. Increase the net present value of a project.

d. Decrease the net present value of a project.

e. Have no effect on either a project's cash flows or its net present value.

The bonds issued by Jensen & Son bear a 6% coupon, payable semiannually. The bond matures in eight years and has a $1,000 face value. Currently, the bond sells at par. What is the yield to maturity?

Select one:

a. 5.87%

b. 5.97%

c. 6.00%

d. 6.09%

e. 6.17%