Can someone help with on this quiz? It has 90 minutes allotted to it, and I am willing to pay more. It is for finance 300.

Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, use the PI to determine which projects the company should accept. Cash Flow Project U Project V Year 0 minus$2,200,000 minus$2,300,000 Year 1 $550,000 $1,150,000 Year 2 $550,000 $1,050,000 Year 3 $550,000 $950,000 Year 4 $550,000 $850,000 Year 5 $550,000 $750,000 Discount rate 5% 13% What is the PI of project U? (Round to two decimal places.) Project U should be rejected accepted . What is the PI of project V? (Round to two decimal places.) Project V should be rejected accepted . Payback period. What are the payback periods of projects E and F? Assume all the cash flow is evenly spread throughout the year. If the cutoff period is three years, which project(s) do you accept? Cash Flow E F Cost $42,000 $90,000 Cash flow year 1 $10,500 $18,000 Cash flow year 2 $10,500 $9,000 Cash flow year 3 $10,500 $36,000 Cash flow year 4 $10,500 $27,000 Cash flow year 5 $10,500 $0 Cash flow year 6 $10,500 $0 What is the payback period for project E? __ years (Round to one decimal place.) With a three-year cutoff period for recapturing the initial cash outflow, project E would be accepted rejected . What is the payback period for project F? __years (Round to one decimal place.) With a three-year cutoff period for recapturing the initial cash outflow, project F would be accepted rejected . MIRR unequal lives. Grady Enterprises is looking at two project opportunities for a parcel of land the company currently owns. The first project is a restaurant, and the second project is a sports facility. The projected cash flow of the restaurant is an initial cost of $450,000 with cash flows over the next six years of $170,000 (year one), $210,000 (year two), $$330,000 (years three through five), and $1,800,000 (year six), at which point Grady plans to sell the restaurant. The sports facility has the following cash flows: initial cost of $2,490,000 with cash flows over the next four years of $390,000 (years one through three) and $3,440,000 (year four), at which point Grady plans to sell the facility. The appropriate discount rate for the restaurant is 9.0 % and the appropriate discount rate for the sports facility is 11.5%. What are the MIRRs for the Grady Enterprises projects? What are the MIRRs when you adjust for the unequal lives? Do the MIRR adjusted for unequal lives change the decision based on the MIRRs? Hint: Take all cash flows to the same ending period as the longest project. If the appropriate reinvestment rate for the restaurant is 9.0%, what is the MIRR of the restaurant project? (Round to two decimal places.) If the appropriate reinvestment rate for the sports facility is 11.5%, what is the MIRR of the sports facility? (Round to two decimal places.) Based on the MIRR, Grady should pick the sports facility restaurant project.(Select from the drop-down menu.) What is the MIRR of the restaurant when you adjust for unequal lives? (Round to two decimal places.) What is the MIRR of the sports facility when you adjust for unequal lives? (Round to two decimal places.) Based on the adjusted MIRR, Grady should pick the sports facility restaurant project.(Select from the drop-down menu.) Does the decision change? No Yes . (Select from the drop-down menu.) Comparing payback period and discounted payback period. Mathew, Inc. is debating using the payback period versus the discounted payback period forsmall-dollar projects. The company's information officer has submitted a new computer project with a cost of $16,000. The cash flow will be $4,000 each year for the next five years. The cutoff period used by the company is 4 years. The information officer states that it doesn't matter which model the company uses for the decision; the project is clearly acceptable. Demonstrate for the information officer that the selection of the model does matter. What is the payback period for the project? years(Round to one decimal place.) Calculate the discounted payback period for the project at any positive discount rate, say 1%. The discounted payback period for the project is less than greater than the 4-year cutoff period.(Select from the drop-down menu.) Therefore, with the payback period the project is a go no-go , whereas with the discounted payback period the project is a go no-go ; so the selection of the method does matter. doesn't matter. (Select from the drop-down menus.) ALL YELLOW IS ONE SENTENCE Net present value. Quark Industries has three potential projects, all with an initial cost of $1,700,000. The capital budget for the year will allow Quark to accept only one of the three projects. Given the discount rate and the future cash flow of each project, determine which project Quark should accept. Cash Flow Project M Project N Project O Year 1 $400,000 $600,000 $900,000 Year 2 $400,000 $600,000 $700,000 Year 3 $400,000 $600,000 $500,000 Year 4 $400,000 $600,000 $300,000 Year 5 $400,000 $600,000 $100,000 Discount rate 7% 13% 17% Which project should Quark accept?(Select the best response.) A. Project Upper Project O B. Project Upper Project N C. Project Upper Project M D. None of the projects Benefits of diversification. Sally Rogers has decided to invest her wealth equally across the following three assets. What are her expected returns and the risk from her investment in the three assets? How do they compare with investing in asset M alone? Hint: Find the standard deviations of asset M and of the portfolio equally invested in assets M, N, and O. States Probability Asset M Return Asset N Return Boom 31% 11% Normal 53% 9% Recession 16% 3% What is the expected return of investing equally in all three assets M, N, and O? nothing % 21% 13% 1% Asset O Return 3% 9% 11% (Round to two decimal places.) What is the expected return of investing in asset M alone? nothing % (Round to two decimal places.) What is the standard deviation of the portfolio that invests equally in all three assets M, N, and O? nothing % (Round to two decimal places.) What is the standard deviation of asset M? nothing % (Round to two decimal places.) By investing in the portfolio that invests equally in all three assets M, N, and O rather than asset M alone, Sally can benefit by increasing her return by nothing % and decreasing her risk by nothing %. (Round to two decimal places.) Standard deviation. Calculate the standard deviation of U.S. Treasury bills, long-term government bonds, and large-company stocks for 1986 to 1995 from Table 8.1. Which had the highest variance? Which had the lowest variance? Click on the Spreadsheet Learning Aid to see Table 8.1long dashYear-by-Year Returns, 1950-1999. Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type. What is the standard deviation of U.S. Treasury bills for 1986 to 1995? nothing % (Round to three decimal places.) What is the standard deviation of long-term government bonds for 1986 to 1995? nothing % (Round to three decimal places.) What is the standard deviation of large-company stocks for 1986 to 1995? nothing % (Round to three decimal places.) Which investment had the highest variance from 1986 to 1995? (Select the best response.) A. Long-term government bond B. U.S. Treasury bills C. Large-company stocks Which investment had the lowest variance from 1986 to 1995? (Select the best response.) A. Long-term government bond B. U.S. Treasury bills C. Large company stocks Table 8.1 Year-by-Year Returns, 1950-1999 ThreeLong-Term Month Governmen U.S.Treasur t Bonds Year y Bills 1950 1.20% -0.96% 1951 1.49% -1.95% 1952 1.66% 1.93% 1953 1.82% 3.83% 1954 0.86% 4.88% 1955 1.57% -1.34% 1956 2.46% -5.12% 1957 3.14% 9.46% 1958 1.54% -3.71% 1959 2.95% -3.55% 1960 2.66% 13.78% 1961 2.13% 0.19% 1962 2.72% 6.81% 1963 3.12% -0.49% 1964 3.54% 4.51% Large Company Stocks Small Company Stocks 32.68% 23.47% 18.91% -1.74% 52.55% 31.44% 6.45% -11.14% 43.78% 12.95% 0.19% 27.63% -8.79% 22.63% 16.67% 48.45% 9.41% 6.36% -5.66% 65.13% 21.84% 3.82% -15.03% 70.63% 17.82% -5.16% 30.48% -16.41% 12.20% 18.75% 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 3.94% 4.77% 4.24% 5.24% 6.59% 6.50% 4.34% 3.81% 6.91% 7.93% 5.80% 5.06% 5.10% 7.15% 10.45% 11.57% 14.95% 10.71% 8.85% 10.02% 7.83% 6.18% 5.50% 6.44% 8.32% 7.86% 5.65% 3.54% 2.97% 3.91% 5.58% 5.50% 5.32% 5.11% 4.80% -0.27% 3.70% -7.41% -1.20% -6.52% 12.69% 17.47% 5.55% 1.40% 5.53% 8.50% 11.07% 0.90% -4.16% 9.02% 13.17% 3.61% 6.52% -0.53% 15.29% 32.68% 23.96% -2.65% 8.40% 19.49% 7.13% 18.39% 7.79% 15.48% -7.18% 31.67% -0.81% 15.08% 13.52% -8.74% 12.50% -10.25% 24.11% 11.00% -8.33% 4.10% 14.17% 19.14% -14.75% -26.40% 37.26% 23.98% -7.26% 6.50% 18.77% 32.48% -4.98% 22.09% 22.37% 6.46% 32.00% 18.40% 5.34% 16.86% 31.34% -3.20% 30.66% 7.71% 9.87% 1.29% 37.71% 23.07% 33.17% 28.58% 21.04% 37.67% -8.08% 103.39% 50.61% -32.27% -16.54% 18.44% -0.62% -40.54% -29.74% 69.54% 54.81% 22.02% 22.29% 43.99% 35.34% 7.79% 27.44% 34.49% -14.02% 28.21% 3.40% -13.95% 21.72% 8.37% -27.08% 50.24% 27.84% 20.30% -3.34% 33.21% 16.50% 22.36% -2.55% 21.26% 50-year average 5.226% 5.936% 14.890% 17.103% Standard Deviation 2.980% 9.493% 16.695% 29.043% Note: Sources for annual returns are the Center for Research on Security Prices, Standard &Poor's 500 index, Russell 2000 index, and Solomon-Smith Barney U.S. Treasury bill index. Beta of a portfolio. The beta of four stocksP, Q, R, and Sare 0.58, 0.74, 1.05,and 1.47, respectively. What is the beta of a portfolio with the following weights in each asset? Weight in Weight in Weight in Weight in Stock P Portfolio 25% 1 Portfolio 30% 2 Portfolio 10% 3 What is the beta of portfolio 1? nothing (Round to two decimal places.) What is the beta of portfolio 2? nothing (Round to two decimal places.) What is the beta of portfolio 3? nothing (Round to two decimal places.) Historical returns. Stock Q Stock R Stock S 25% 25% 25% 40% 20% 10% 20% 40% 30% Calculate the arithmetic average return of U.S. Treasury bills, long-term government bonds, andlarge-company stocks for 1990 to 1999. Which had the highest return? Which had the lowest return? On the left side, click on the Spreadsheet Learning Aid to see Table 8.1Year-by-Year Returns, 1950-1999. What is the average return of U.S. Treasury bills for 1990 to 1999? nothing % (Round to two decimal places.) What is the average return of long-term government bonds for 1990 to 1999? nothing % (Round to two decimal places.) What is the average return of large-company stocks for 1990 to 1999? nothing % (Round to two decimal places.) Which investment had the highest average return for 1990 to 1999? (Select the best response.) A. Large-company stocks B. U.S. Treasury bills C. Long-term government bond Which investment had the lowest average return for 1990 to 1999? (Select the best response.) A. Long-term government bond B. Large-company stocks C. U.S. Treasury bills Table 8.1 Year-by-Year Returns, 1950-1999 ThreeLong-Term Month Governmen U.S.Treasur t Bonds Year y Bills 1950 1.20% -0.96% 1951 1.49% -1.95% 1952 1.66% 1.93% 1953 1.82% 3.83% 1954 0.86% 4.88% 1955 1.57% -1.34% 1956 2.46% -5.12% 1957 3.14% 9.46% 1958 1.54% -3.71% 1959 2.95% -3.55% 1960 2.66% 13.78% 1961 2.13% 0.19% 1962 2.72% 6.81% 1963 3.12% -0.49% 1964 3.54% 4.51% 1965 3.94% -0.27% 1966 4.77% 3.70% 1967 4.24% -7.41% 1968 5.24% -1.20% 1969 6.59% -6.52% Large Company Stocks Small Company Stocks 32.68% 23.47% 18.91% -1.74% 52.55% 31.44% 6.45% -11.14% 43.78% 12.95% 0.19% 27.63% -8.79% 22.63% 16.67% 12.50% -10.25% 24.11% 11.00% -8.33% 48.45% 9.41% 6.36% -5.66% 65.13% 21.84% 3.82% -15.03% 70.63% 17.82% -5.16% 30.48% -16.41% 12.20% 18.75% 37.67% -8.08% 103.39% 50.61% -32.27% 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 50-year average Standard Deviation 6.50% 4.34% 3.81% 6.91% 7.93% 5.80% 5.06% 5.10% 7.15% 10.45% 11.57% 14.95% 10.71% 8.85% 10.02% 7.83% 6.18% 5.50% 6.44% 8.32% 7.86% 5.65% 3.54% 2.97% 3.91% 5.58% 5.50% 5.32% 5.11% 4.80% 12.69% 17.47% 5.55% 1.40% 5.53% 8.50% 11.07% 0.90% -4.16% 9.02% 13.17% 3.61% 6.52% -0.53% 15.29% 32.68% 23.96% -2.65% 8.40% 19.49% 7.13% 18.39% 7.79% 15.48% -7.18% 31.67% -0.81% 15.08% 13.52% -8.74% 4.10% 14.17% 19.14% -14.75% -26.40% 37.26% 23.98% -7.26% 6.50% 18.77% 32.48% -4.98% 22.09% 22.37% 6.46% 32.00% 18.40% 5.34% 16.86% 31.34% -3.20% 30.66% 7.71% 9.87% 1.29% 37.71% 23.07% 33.17% 28.58% 21.04% -16.54% 18.44% -0.62% -40.54% -29.74% 69.54% 54.81% 22.02% 22.29% 43.99% 35.34% 7.79% 27.44% 34.49% -14.02% 28.21% 3.40% -13.95% 21.72% 8.37% -27.08% 50.24% 27.84% 20.30% -3.34% 33.21% 16.50% 22.36% -2.55% 21.26% 5.226% 5.936% 14.890% 17.103% 2.980% 9.493% 16.695% 29.043% Note: Sources for annual returns are the Center for Research on Security Prices, Standard &Poor's 500 index, Russell 2000 index, and Solomon-Smith Barney U.S. Treasury bill index. Profits. What are the profits on the following investments? Enter a negative number for a loss. Investm Original Cost Selling Price Distributions ent of Investment of Investment Received CD $800800 $850850 $0 Stock $2222 $1111 $33 Bond $1 comma 0301,030 $1 comma 1001,100 $100100 Car $48 comma 00048,000 $24 comma 00024,000 $0 Investm ent CD STOCK BOND CAR Original Cost of Investment $800 Selling Price of Investment Distributions Received $850 $22 $1,03 0 $48000 Dollar Profit/ (Loss) ? ? ? ? $0 $11 $3 $1,100 $100 $24,000 $0 Dollar Profit/(Loss) $ nothing (Round to the nearest dollar.) $_________ Round to the nearest dollar.) $________Round to the nearest dollar.) $_________Round to the nearest dollar.)