1)

Two mutually exclusive projects have an initial cost of $50,000 each. Project A produces cash inflows of $30,000, $35,000, and $25,000 for Years 1 through 3, respectively. Project B produces cash inflows of $45,000, $35,000 and $10,000 for Years 1 through 3, respectively. The required rate of return is 13.0 percent for Project A and 16.0 percent for Project B. Which project(s) should be accepted and why?

Group of answer choices

Project A, because it has the larger NPV.

Project B, because it has the higher required rate of return.

Project A, because it has the higher required rate of return.

Project B, because it has the largest cash inflow in Year 1.

Project B, because it has the larger NPV

2)

Biden and Harris Co. has a dividend yield of 5.4 percent and a total return for the year of 4.8 percent. Which one of the following must be true?

Group of answer choices

The firm is experiencing supernormal growth

The required rate of return for this stock increased over the year.

The stock has a negative capital gains yield.

The capital gains yield must be zero.

The dividend must be constant.