1. Describe 2 similarities and 2 differences between a financial asset and a tangible asset?

2. Payback period Project K costs $70,000, its expected cash inflows are $8,000 per year for 12 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.

3. A company has total assets of $2.5 million, total liabilities of $1.0 million, and $225,000 worth of 8% preferred stock outstanding.

What is the firm's total book value? Enter your answer in dollars and not in millions of dollars. $  

4. Factors destroying firm value following a merger or acquisition could include all but which of the following:

1. Poor product quality

2. Excessive wage and benefit levels

3. Low labor productivity

4. High employee turnover

5. Incremental revenue due to product cross-selling