31. a. b. Projects often require additional net working capital. Which of the following is correct? To get the project running, some inventory (a current asset) must be added. To get new stores open, some cash in the cash registers is needed (also a current asset To generate sales, new projects might have to extend credit (some additional accounts receivable, also a current asset). d. All of the above. c. 32. a. b. Managerial options on capital projects can make them even more valuable. Which is NOT a managerial option? An option to obey a government mandate to reduce water usage. An option to abandon the project earlier than predicted. An option to expand the project into new markets or new products. An option to wait to begin the project in a future period. c. d. Chapter 10: Some lessons from capital market history. (8 questions) 33. a. The common stock of Dave & Busters has yielded 10 percent, 13 percent, 6 percent, and 7 percent over the past four years, respectively. What is the arithmetic return? 7.81% b. 9% 10.2% d. 11.28% C. 34. Mutual fund returns for the past 3 years are: 12% 2019 2020 2021 -5% 22% The geometric return is about: a. 10.1% b. 8.5% c. 9.67% d. 9.09% dre yd babib 35. Historical data on asset classes tend to show: that all asset classes earn about the same amount. the risk free rate, taken to be Treasury Bills, is the riskiest class. higher average returns for asset classes that have lower risk. d. higher average returns for asset classes that have higher risk. 36. What is true about the geometric return? a. It is smaller than the arithmetic return (except in the case when all the returns are identical, where the two are equal). b. It is larger than the arithmetic return (except in the case when all the returns are identical, where the two are equal). Sometimes the geometric return is larger and sometimes it is smaller than the arithmetic return. d. all of the above. C