Please use the previous data to help on this question.

You're trying to value a project which will last for 5 years and cease to exist after that. The initial cost of the project is $500,000. The projects is expected to yield the following cash flows: 200,000 in year one, 600,000 in year two, 50,000 in years three, four and five. Please use the following information to determine the NPV of this project. Tax-rate: 25% Cost of Debt: 8% D/E ratio: 3/5 T-Bill rate: 2% S&P 500 expected return: 10% Beta: 2

b. If the IRR for a project is 15%, then the project's NPV would be

2. What is the effective compound annual rate of interest on a $10,000 loan which is paid off by 48 monthly payments of $261 if the first payment is due 1 month after receipt of the loan?

3

You purchased JNJ stock at $50 per share. The stock is currently selling at $65. Your gains may be protected by placing a __________.

stop-buy order

limit-buy order

market order

limit-sell order

none of the above.

4.

State	Probability	Return on Stock A	Return on Stock B
1	0.10	10%	8%
2	0.20	13%	7%
3	0.20	12%	6%
4	0.30	14%	9%
5	0.20	15%	8%

a.The expected rates of return of stocks A and B.

b.The standard deviations of stocks A and B.

c.The coefficient of correlation between A and B.

d.If you invest 40% of your money in A and 60% in B, what would be your portfolio's expected rate of return and standard deviation.

5.Frank is an option speculator. He anticipates the Danish kroner to appreciate from its current level of $0.19 to $0.21. Currently, kroner call options are available with an exercise price of $0.18 and a premium of $0.02. Should Frank attempt to buy this option? If the future spot rate of the Danish kroner is indeed $0.21, what is his profit or loss per unit?

please I want to know the working by solving the questions step-by-step.

Thanks