22. Historically, the yield curve has generally been ____, which indicates that long-term interest rates usually have been ____ short-term interest rates. (Points : 3) upward sloping, lower than downward sloping, higher than upward sloping, higher than level, about equal to

Question 23. 23. Commercial paper is: (Points : 3)

long-term with maturities greater than one year. short-term with maturities under six months. short-term with maturities that do not exceed nine months. long-term with maturities of greater than five years.

Question 24. 24. For Ejection Air Seats Airlines new project, the initial outlay required is $22 million. Net cash flows over the 4-year life cycle and the corresponding certainty-equivalents of the new model are as follows:

Year	Net Cash Flow	Certainty-equivalent
1	$15 million	0.90
2	13 million	0.75
3	11 million	0.55
4	9 million	0.30

The firm's cost of capital is 14% and the risk-free rate is 6%. Bull uses the certainty-equivalent approach in evaluating above-average risk investments such as this one. What is the project's certainty-equivalent NPV? (Points : 3)

$20,083,000 $ 6,628,400 $13,905,000 $ 3,019,400