Documento 1 - Microsoft Word (Error de activacin de productos) Correspondencia Revisar Vista nicias Aa ETF F 2+ . , Ttulo 1 Subtitulo aby - A 1 Normal 1 Sin espa... Titulo 2 Titulo Prrafo Estilos 1 II.1.1.2.13 14:15 16 17 18 19 110 111 112 113 114 115 116 117 118 QUESTION 2 1. Back to the Future Inc. is considering purchasing new flux capacitors to replace wom out capacitors that have a book value of zero and a market value of $15,000. New flux capacitors cost $90,000 and are expected to provide production savings and increased profits of $30,000 annually for the next 10 years. Classify this project with respect to risk (enter "Replacement", "Expansion", or "New Venture": Classify this project with respect to conditionality (enter "Stand Alone", "Mutually-Exclusive", or I "Contingent") What is the payback period in years (Enter a number only, without "years")? 1 QUESTION 3 Jocelyn's investment allocation and returns on each asset class are presented below. What is the overall return on her portfolio (enter your answer in percent, without "%")? Asset Class Allocation Total Return Cash 10% 0.50% Bonds 30% 1.00% Stocks 70% 10.00% idos) Documento 1 Microsoft Word (Error de activacin de productos) cias Correspondencia Revisar Vista " E 211 ab - A | . 11 Normal Sin espa... Titulo 1 Titulo 2 Titulo Subtit Prrafo Estilos II.1 1.2 1.3 1.4 1.5 1.6.1:7:18. 1.9.10 111 112 113 114 115 116 117 1 Year 0 0 Brooklyn Knights, Inc. ("BK") is considering two projects with the following cash flows. Project X Project Y ($100,000) ($100,000) 1 40,000 50,000 2 40,000 0 3 40,000 4 40,000 0 5 40,000 325,000 BK uses the payback period method of capital budgeting and accepts only projects with payback periods of 3 years or less. What is the payback period for project X in years (round up to the nearest whole number, enter a number only without "years")? What is the payback period for project Y in years (round up to the nearest whole number, enter a number only, without "years")? If the projects are presented as stand-alone opportunities, which one(s) would BK accept (enter "X" or "Y" or "Both" or "Neither")? If they were mutually exclusive and BK disregarded its three-year rule, which project would be chosen? (enter "X" or "Y" or "Both" or "Neither")|