Question: QUESTION 19 5 points Save Ans You are considering an investment in software company. The beta of software companies is 1.5. The annual risk-free rate

 QUESTION 19 5 points Save Ans You are considering an investment

QUESTION 19 5 points Save Ans You are considering an investment in software company. The beta of software companies is 1.5. The annual risk-free rate is 2% and the annual market premium is 8%. The expected annual profit from the software subscription is $100,000 and it is expected to grow at the rate of 6% per year. What is the maximum price you are willing to pay for the company? A. S1,370,925.78 B. $1,250,000.00 C. $1,123,221.12 D. $908,153.55 QUESTION 20 5 points Save Answer Project A has a NPV of $200K and an IRR of 30%. Project B has a NPV of S250K and an IRR of 20%. Both projects require an investment of 100K. Which of the following statements is correct if you can choose only one project? A. None of the other statements above is correct B. Project B is preferred over Project A c. Project A has a higher profitability index than Project B D. Project A is preferred over Project B

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