1.A project is expected to generate $2M per year forever. Find the profitability index if the required return for the project is 12% and the initial investment is $10M. a.1.67 b.1.20 c.1.06 d.1.43 e.0.98

2.you are a manager with an investment budget of $100 million. Which of the following non mutually exclusive projects would you choose?

Project	Initial Investment ($MM)	NPV ($MM)
A	50	10
B	40	5
C	30	10
D	20	5
E	10	1
F	10	1.5
G	20	3
H	30	3

		"B, C, D, E"
		"A, C, D"
		"C, E, F, G, H"
		"A, B, F"
		"B, C, H"

3.A project is expected to generate $1.5M per year forever. Find the IRR if the initial investment is $10M.

		15.0%
		13.4%
		11.8%
		13.0%
		15.7%

4.

1. Project A requires an initial investment of $50M and generates $10M per year forever. Project B requires an initial investment of $125M and generates $20M per year forever. What is the crossover rate for these two projects?

   		15.4%
   		26.9%
   		13.3%
   		5.6%
   		9.1%

5.

hat is the payback period of the following project?

Year 0	($170)
Year 1	$100
Year 2	$100
Year 3	$100

		1.7 years
		5 years
		2 years
		7.5 years
		3.3 years