Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, which of the following statements is true? Year 0 235533 Project A -580,000 290,000 290,000 150,000 150,000 Project B -580,000 130,000 130,000 230,000 230,000 230,000 115,000 Project A should be accepted because it has the highest NPV. Both projects should be accepted because both have a positive NPV (and EAA). Project A should be accepted because it has the highest EAA. Project B should be accepted because it has the highest NPV. Project B should be accepted because it has the highest EAA.

Can you answer part 4

5 basic of pulic sector ethics

Problem 9-25 Fudge factors An oil company executive is considering investing $10.1 million in one or both of two wells: well 1 is expected to produce oil worth $3.01 million a year for 10 years; well 2 is expected to produce $2.01 million for 15 years. These are real (inflation-adjusted) cash flows. The beta for producing wells is 0.91. The market risk premium is 9%, the nominal risk-free interest rate is 7%, and expected inflation is 3%. The two wells are intended to develop a previously discovered oil field. Unfortunately there is still a 21% chance of a dry hole in each case. A dry hole means zero cash flows and a complete loss of the $10.1 million investment. Ignore taxes and make further assumptions as necessary. a. What is the correct real discount rate for cash flows from developed wells? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Real discount rate b. The oil company executive proposes to add 20 percentage points to the…

A. For what values of x is f(x) NOT y 00 6 4 2 X -3-2-10 1 2 3 4 5

Answer Question 4

What about requirement 4+5

P10.5

I, J, K

Why woul it not be Schedule B