Question: 1. Jack is evaluating two mutually exclusive capital budgeting projects that have the following characteristics: If the firm's required rate of return (r) is 8


1. Jack is evaluating two mutually exclusive capital budgeting projects that have the following characteristics: If the firm's required rate of return (r) is 8 percent, which project should be purchased? Both projects should be purchased, because the IRRs for both projects exceed the firm's required rate of return. Neither project should be accepted, because the IRRs for both projects exceed the firm's required rate of retum. Project Q should be accepted, because its net present value (NPV) is higher than Project R's NPV. Project R should be accepted, because its net present value (NPV) is higher than Project Q's NPV. BETA Technologies Company's stocks had 6%,11% and 19% rates of return during the last three years respectively; calculate the standard deviation of the rate of return for the stock. 11.85% 13.53% 12.77% None of the above The Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Years 1 through 4,$50,000 per year in Years 5 through 9 , and $50,000 in Year10. This investment will cost the firm $250,000 today, and the firm's required rate of return is 10 percent. Assume cash flows occur evenly during the year, 1/365th each day. What is the payback period for this investment?(show your work)
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