Question: 7) Using the EAA method which of these projects should you choose? The interest rate is 12.62%. Project A t 0 1 2 3 4

7) Using the EAA method which of these projects should you choose? The interest rate is 12.62%.

Project A

t 0 1 2 3 4 5 6 7
CF -297 68 55 74 61 57 53 46

Project B

t 0 1 2
CF -35 48 26

Group of answer choices

Project A & B

Project A

None of these projects

Project B

8) What is the 95% confidence interval for the following return series?

Year Return
1 7.66%
2 7.15%
3 -3.93%
4 8.92%
5 -2.61%
6 -2.66%
7 9.85%
8 6.08%
9 11.92%
10 3.75%
11 11%
12 11.9%
13 -4.26%
14 11.18%
15 9.51%
16 1.83%
17 11.51%
18 12.79%
19 15.51%
20 13.87%

Group of answer choices

(0.79%, 13.31%)

(-5.46%, 19.56%)

(6.7%, 7.3%)

(-3.16, 9.78%)

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