1. What is the profitability index and its relation to net present value?
2. The past five monthly returns from K and Company are 5.55 percent, -.85 percent, -.15 percent, and 10.30 percent. What is the average monthly rerurn?
3. Do you think it is a wise business decision to hedge foreign currency risk? Explain your position.
4. What is the payback rule and some of its shortcomings.