PLEASE ANSWER THIS IN EXCEL ONLY. NO WORD DOC'S. MUST HAVE THE FORMULAS IN THE EXCEL!

CH8. 7.)

A project that provides annual cash flows of $1,930 for eight years costs $7,700 today. Is this a good project if the required return is 8 percent? What if it's 24 percent? At what discount rate would you be indifferent between accepting the project and rejecting it?

CH11. 12.)

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.42 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?

CH11. 17.)

A stock has a beta of 1.15 and an expected return of 10.4 percent. A risk-free asset currently earns 3.8 percent.

• What is the expected return on a portfolio that is equally invested in the two assets?
• If a portfolio of the two assets has a beta of .7, what are the portfolio weights?
• If a portfolio of the two assets has an expected return of 9 percent, what is its beta?
• If a portfolio of the two assets has a beta of 2.3, what are the portfolio weights? How do you interpret the weights for the two assets in this case? Explain.

CH12. 17.)

An all-equity firm is considering the following projects:

Project	Beta	IRR
W	.80	10.2%
X	.90	11.4
Y	1.10	12.6
Z	1.35	15.1

The T-bill rate is 4 percent, and the expected return on the market is 12 percent.

• Which projects have a higher expected return than the firm's 12 percent cost of capital?
• Which projects should be accepted?
• Which projects will be incorrectly accepted or rejected if the firm's overall cost of capital were used as a hurdle rate?

PLEASE ANSWER THIS IN EXCEL ONLY. NO WORD DOC'S. MUST HAVE THE FORMULAS IN THE EXCEL! CH8. 7.) A project that provides annual cash flows of $1,930 for eight years costs $7,700 today. Is this a good project if the required return is 8 percent? What if it's 24 percent? At what discount rate would you be indifferent between accepting the project and rejecting it? CH11. 12.) You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.42 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio? CH11. 17.) A stock has a beta of 1.15 and an expected return of 10.4 percent. A risk-free asset currently earns 3.8 percent. A.) What is the expected return on a portfolio that is equally invested in the two assets? B.) If a portfolio of the two assets has a beta of .7, what are the portfolio weights? C.) If a portfolio of the two assets has an expected return of 9 percent, what is its beta? D.) If a portfolio of the two assets has a beta of 2.3, what are the portfolio weights? How do you interpret the weights for the two assets in this case? Explain. CH12. 17.) An all-equity firm is considering the following projects: Project W X Y Z Beta .80 .90 1.10 1.35 IRR 10.2% 11.4 12.6 15.1 The T-bill rate is 4 percent, and the expected return on the market is 12 percent. A.) Which projects have a higher expected return than the firm's 12 percent cost of capital? B.) Which projects should be accepted? C.) Which projects will be incorrectly accepted or rejected if the firm's overall cost of capital were used as a hurdle rate