1. You must find the payback for a project, and you have misplaced some of the information that you were given. You know that the project will generate positive cash flows of $60,000 per year at the end of each of the next 5 years, that its NPV is $75,000, and that the company’s WACC is 10%. What is the project’s regular payback?

2.11 years

2.27 years

2.38 years

2.54 years

3.08 years

2. The risk that is limited to a particular industry is also known as _____.?

a. ?combined risk

b. ?non-diversifiable risk

c. ?market risk

d. ?unsystematic risk

e. ?relevant risk