1.) Use this table for Questions 3 and 4:

1. 	Project A	Project B
   IRR	18%	15%
   NPV	$8,000	$10,000

   If the companys cost of capital is 18%, you would not reject Project B

   True

   False

2) .Use this table for Questions 3 and 4:

	Project A	Project B
IRR	18%	15%
NPV	$8,000	$10,000

If Project B had an IRR of 18%, you would select Project B over Project A

True

False

3.) The risk-free rate is 5% and the expected return of the market is 10%. If Vanderlay Industries has a Beta of 1.0, what is the required return?

	A.	5%
	B.	10%
	C.	12.5%
	D.	15%