Question: plz help me with this question. just need to know which one its the answer. no explanation needed thanks! QUESTION 1 The development manager is

QUESTION 1 The development manager is required to choose between two projects. Project A has an IRR of 25% and project B has an IRR of 30%. Which of the following statements is correct? A. If she can invest only in one project, the manager will choose project A B. If she can invest in both projects, the manager will choose both projects A and B C. None of the statements above is correct D. If she can invest only in one project, the manager will choose project B QUESTION 2 Assume that the firm is 40% financed by debt and 60% financed by equity. Its cost of debt is 8% and the cost of equity is 15%. The tax rate is 40%. What is the firm's WACC? A. 10.92% B. 8.75% C. 13.00% 9.36% D. QUESTION 6 You have three millions to invest and there are three projects: Project Investment NPV IM 0.4M B 2M 0.25M 3M 0.5M Which projects will you choose? B. A&B . D.A&C QUESTION 7 You consider undertaking the research project. It will increase sales by S100K per year starting next year and its life is 10 years. The maintenance cost is SSOK and the depreciation of the equipment is 20K per year. The tax rate is 40% and there are no changes in net operating working capital. What is the annual operating cash flow from the project? A. $30.000 B. $38.000 C. S10,000 D.S18,000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
