xyz is considering a project that would last for

question 19

XYZ is considering a project that would last for 2 years. The project would involve an initial investment of $174,000 for new equipment that would be sold for an expected price of $62,000 at the end of the project in 2 years. The equipment would be depreciated to zero over 3 years using straight-line depreciation. In years 1 and 2. relevant annual revenue for the project is expected to be $240,000 per year and relevant annual costs for the project are expected to be $110,000 per year. The tax rate is 25 percent and the cost of capital for the project is 21.3 percent. What is the net present value of the project? a. 526,056 (plus or minus 5100) b. 535.911 (plus or minus $100) C 536.960 (plus or minus 5100) d. 536.590 (plus or minus 5100) e. None of the above is within 5100 of the correct answer QUESTION 20 The expected return on the market is greater than the risk-free rate, which is greater than zero. Based on the information in the table and in this paragraph, which stock has the highest expected return? Geometric Arithmetic Expected average annual average annual standard return over the return over the deviation of Stock past 15 years past 15 years Share price Beta $1245 10.72 $16.2 $15.55 TES Click Save and submit to save and submit. Click Save All Arms to all answers ZALMAN SUNG 5 SGP