Question: Please solve all the question, it's only one question with multible part. 4. The following information on two mutually exclusive projects is given below: Which

 Please solve all the question, it's only one question with multible

Please solve all the question, it's only one question with multible part.

4. The following information on two mutually exclusive projects is given below: Which of the following statements is correct? e) Project A would be a better choice, as the required investment is smaller with the same rate of return. f) Since the two projects have the same rate of return, they are indifferent. g) Project B would be a better choice as long as the investor's MARR is less than 25%. h) Project B is a better choice regardless of the investor's MARR. a) Compressor I is preferred, because its increment of investment exceeds 15%. b) Compressor II is preferred, because its increment of investment exceeds 15%. c) Compressor I is preferred, because its rate of return exceeds 15%. d) Compressor II is preferred, because its rate of return exceeds 15%. e) None of the above. 6) If a company has returns of 17% and a WACC of 10%, then: a) The company is losing 7 cents for every dollar spent (7%). b) There is no debt. c) The company is profiting 7 cents for every dollar spent (7%) d) The equity cost is 7% 7) If X company's debt was $240 billion, its market CAPM (or equity value) is $60 billion. Then: a) XsWACC=(80%+20%)/2 b) X is expected to lose 20% c) X finances operations with 20% equity and 80% debt. d) X finances operations with 75% equity and 25% debt

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