Question: 1.)When comparing two mutually exclusive projects or more, the best project valuation method is: Select one: a. NPV b. Profitability index c. Payback d. IRR

 1.)When comparing two mutually exclusive projects or more, the best project

1.)When comparing two mutually exclusive projects or more, the best project valuation method is: Select one: a. NPV b. Profitability index c. Payback d. IRR 2.)Consider a project that has an initial investment of 100,000 KD. It is expected to generate 20,000 KD per year in net revenue for the next 7 years. The WACC is 8% per year. The NPV of this project is: Select one: a. 4712.4 KD b. 3821.66 KD c. 4127.4 KD d. 3218.66 KD I 3.)Historical returns for stocks A and B over the past 4 years are listed below. Imagine 3.3% you have invested in A and the rest in B stock. Calculate average return for your portfolio Year A Return B Return 2016 10 12 2017 12 8 2018 15 8 2019 19 12 Note: Do not round your answer. Write the answer without "%" sign. For example, if average return for your portfolio is 10.3%, write 10.3 4.)Why is the NPV the primary capital budgeting decision criterion? Differentiate between Independent and mutually exclusive projects 5.) XYZ company's share has a beta of 0.8. The risk-free rate is 4.8% and the expected return on the market is 9.4%. What is the required rate of return on XYZ's share? Note: Do not round your answer. Write the answer without sign. For example, if required rate of return is 10.3%, write 10.3 6.) Bugs Corp. has funded its mega project through shares worth $3,000,000. The total funding required was $5,000,000. The rest of funding was achieved through bonds. What is the weight of bonds in the total funding of the project? Select one

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