Part $1.$ Meek's is considering a five$-$year project that will require $$738,000$ for new fixed assets that will be depreciated straight$-$line to a zero book value over five years. No bonus depreciation will be taken. At the end of the project, the fixed assets can be sold for $18$ percent of their original cost. The project is expected to generate annual sales of $$679,000$ with costs of $$321,000.$ The tax rate is $21$ percent and the required rate of return is $15\mathrm{.}2$ percent. What is the amount of the taxes paid on the sale of the asset at the end of the project?

A$.$ No taxes are owed$$

B$.$ $$27,896\mathrm{.}40$

C$.$ $$29,224\mathrm{.}80$

D$.$ $$103,615\mathrm{.}20$

E$.$ $$104,943,60$

Part $2.$ You have a portfolio consisting solely of stock A and stock B$.$ The portfolio has an expected return of $9\mathrm{.}8$ percent. Stock A has an expected return of $11\mathrm{.}7$ percent while stock B is expected to return $8\mathrm{.}3$ percent. What is the portfolio weight of stock A$?$

A$.59\mathrm{.}97\%$

B$.41\mathrm{.}20\%$

C$.44\mathrm{.}12\%$

D$.63\mathrm{.}13\%$

E$.55\mathrm{.}88\%$

Part $3.$ Assume that last year T$-$bills returned $2\mathrm{.}2$ percent while your investment in large$-$company stocks earned an average of $8\mathrm{.}1$ percent. What is the risk premium?

A$.8\mathrm{.}1\%$

B$.5\mathrm{.}9\%$

C$.$ I need more information$$

D$.17\mathrm{.}82\%$

E$.10\mathrm{.}3\%$