Suppose the Far North Airlines has two projects: Setting up a hub in Far East, and Setting up a hub in Far West. Project East has an IRR of 12 percent and project West has an IRR of 15 percent. The crossover rate is 9 percent. The projects appropriate discount rate is 11 percent. Which project(s) Far North should pick?

Corporate tax rate is 20% and ABCs beta is 1.2 if it uses no debt. However, the CFO is considering moving to a capital structure with 50% debt and 50% equity. If the risk-free rate is 5.0% and the market risk premium is 7.0%, by how much would the capital structure shift change the firm's cost of equity?

Project A has a cost of 1,000$ and NPV of 2,000$. What are the PI and Present Value of Future Cashflows of project A?

PV=