1. A project has an initial investment of $198,600 and will generate 55 annual cash flows of $58,700. Assume a cost of capital of 14.4%?
The present value of the cash inflows is
?$nothing.
?(Round to the nearest? cent.)
The profitability index is
2. If a company has a return on equity of 25% and wants a growth rate of 10%, how much of ROE should be retained?
A) 60% B) 40% C) 70% D) 50%
3. When the portfolio manager identifies the highest certainty equivalent return with the feasible risky portfolio, it is the same as identifying the feasible portfolio that places the investor on the highest possible ___________.
a. risky asset. b. risk free portfolio. c. indifference curve. d. benchmark portfolio.