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Ques 41: The beta of Microsoft's stock is 1.2, whereas the risk-free rate of return is 4 percent. Assume that the expected return on the market is 16...

Ques 50: Bailey Company is considering developing a new iPhone app.  The cost of development is expected to be $750,000 (all incurred in time zero) and management expects net cash flows from sale of the app to be $100,000 in year one and $150,000, $225,000, $250,000, $280,000 and $300,000 in years two through six, respectively. What is the Net Present Value of this project if the discount rate is 12%?
$88,764
$838,764
$555,000
$1,305,000

Ques 41: The beta of Microsoft’s stock is 1.2, whereas the risk-free rate of return is 4 percent. Assume that the expected return on the market is 16 percent. Then, what is the expected return on Microsoft stock? A. 8.80% B. 28.00% C. 18.40% D. 23.20% Ques 42: If you have a 3 year loan that requires $1,000 payments each year at 7% annual interest rate what would be the present value of the loan? A. $2,624.32 B. $3,000.00 C. $3,210.00 D. $2,803.74 Ques 43: Robert has a mortgage on his home of $400,000 and has a fixed rate mortgage of 6.125% for 30 years. What would his monthly payments be for this loan? A. $2,041.67 B. $2,596.55 C. $2,430.45 D. $2,788.46 Ques 44: What is the effective annual interest rate? A. The simplest interest rate charged.
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B. Rate that reflects compounding. C. Rate with bank fees included. D. Interest rate quoted by banks. Ques 45: Stern Associates is considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 4 5 Cash flows -$1,100 $300 $310 $320 $330 $340 A. 2.31 years B. 2.56 years C. 2.85 years D. 3.16 years E. 3.52 years Ques 46: Oranges Inc. is considering a project that has the following cash flow and Cost of Capital data. What is the project's discounted payback? Cost of Capital: 10.00% Year 0 1 2 3 4 Cash flows -$950 $525 $485 $445 $405 A. 1.61 years B. 1.79 years C. 1.99 years D. 2.22 years E. 2.44 years Ques 47: Maxwell Food is considering a project that has the following cash flow data. What is the project's IRR? Year 0 1 2 3 4 5
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