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1. If you carry an auto liability insurance requirement of 20/40/10 and are in a car accident where there are three persons in the other car whose medical bills are $7,250, $10,500, and $30,000, how short are you on coverage?

2. What is the maximum that should be invested in a project at time zero if the inflows are estimated at $50,000 annually for 3 years, and the cost of capital is 9%?

3. What is the NPV of the project with the following cash flows?

Year 0: -$400

Year 1: $200

Year 2: $200

Year 3: $400

The WACC for the project is 10%

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92844062

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