You buy a straddle (a call and a put on the same underlying asset with the same exercise price and with the same time to expiration) XYZ whose exercise price on the call and put is $35. The premium on the call is $2.25 and the premium on the put is $8.00. Calculate the straddle's profit or loss if just prior to expiration XYZ's stock price is $10 per share.

		$14.75
		$15.00
		$17.00
		-2.25

The internal rate of return of a standard project is 5.75%, and the project's requried rate of return is 7.75%. The project has a payback of exactly 6 years. From these facts, what can we conclude about the NPV of this project?

		The NPV > 7.75%
		The NPV < $0
		The NPV = $6
		The NPV < 7.75%
		The NPV = $0
		The NPV > $0

Consider a project with an initial investment of $50,000 and a 5 year life. Project inflows are $25,000 each year and project outflows are $13,000 each year. Depreciation is calculated on a straight line method. If the cash flow in Year 1 is $11,700, what is the tax rate?

		35%
		15%
		20%
		10%
		25%
		30%