The Net Present Value (NPV) and Probability distribution for the Project X of a company are:   NPV Estimate Probability   30,000   0.1   60,000   0.4   1,20,000   0.4   1,50,000   0.1   O a. 75,000   O b. 1,00,000   O c. 90,000   O d. 35,000

A project has the following cash flow n 0 1 2 3 Cash flow -25,000 0 X X What is the value of X that will result in 15% rate of return?

Given are three FOREX quotes as follows:   $1/€ $0.5/SF SF2.5 / €   What will be arbitrage profit if you start the process with €1,000?

Rank the following risky investment projects based on stochastic dominance. Project P Project Q Payoff Probability Payoff Probability 20 0.3 30 0.25 40 0.4 50 0.25 70 0.2 60 0.25 80 0.1 90 0.25

Suppose that you have the following utility function: U=E(r) – ½ Aσ2   and A=3  Suppose that you have $10 million to invest for one year and you want to invest that money into ETFs tracking the S&P 500 (US) and S&P/TSX 60 (Canada) index, which are often used as proxies for the US and Canadian stock markets, respectively, and the Canadian one-year T-bill. Assume that the interest rate of the one-year T-bill is 0.35% per annum.   You have found two ETFs that you are interested in. From a set of their historical data between 2001 and 2019, you have estimated the annual expected returns, standard deviations, and covariance as follows: ETFUS :  E(r)= 0.070584 0.173687 ETFCDA  :  E(r)= 0.073763                                     0.16816 Covariance between ETFUS and ETFCDA = 0.02397 Answer the following questions using Excel: What is the optimal portfolio of ETFUS  and ETFCDA? Also submit an Excel file to show your work.

Calculate I/YR with:  PV = $1,750.22 FV = $1,000 N = 5 PMT = $80   please

Dixon Sisters has a project with the after-tax cash flows shown below. The required return (cost of capital) on the investment is 10%. Compute the: Payback b. Discounted payback c. NPV d. Profitability index e. IRR MIRR YEAR             0           1            2        3       4  Cash flow −70,000 30,000 30,000 30,000 20,000

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 11 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3 and 3.5 years, respectively. Time: 0 1 2 3 4 5 Cash flow: −$ 235,000 $ 65,800 $ 84,000 $ 141,000 $ 122,000 $ 81,200 Use the NPV decision rule to evaluate this project.

Consider the following projects. Project C0 C1 C2 C3 C4 C5 A -1,000 +1,000 0 0 0 0 B -2,000 +1,000 +1,000 +4,000 +1,000 +1,000 C -3,000 +1,000 +1,000 0 +1,000 +1,000 Assume that this firm’s  beta= 1.5  The expected market return is 12%.  The risk free rate is 2.5%.  This company can borrow debt at 5.2%.  The firm has $5 billion in debt. It has 6 billion shares outstanding  at $3 price/shr.  The corporate tax rate (Tc) = 21% Question: What is the NPV of project B ?   Multiple Choice   The NPV for project B is $2,158   The NPV for project B is -$122   The NPV for project B is $3,458   The NPV for project B is -$128