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0.5 points QUESTION 9 1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12% Calculate discounted payback for proposal 2 Years Proposal 1- $ Proposal 2- $ (40,000) (64000) 18000 10000 2 24000 32000 3 32000 19000 11000 25000 0 1 4 0.5 points QUESTION 10 1. Muf co. is considering to modernize its production facilities and has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%. Calculate discounted payback for proposal 1 Years Proposal 1-$ Proposal 2- $ 0 (40,000 (64000) 1 18000 10000 2 24000 32000 3 32000 19000 4 11000 25000 0.5 points QUESTION 11 1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%. Write that which proposal is better on the basis of discounted payback. Write only 1 or 2 Years Proposal 1- $ Proposal 2-3 0 (40,000) (64000) 1 18000 10000 2 24000 32000 3 32000 19000 4 11000 25000 1 points QUESTION 12 1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%. Write that which proposal is better on the basis of IRR. Write only 1 or 2 Years Proposal 1-$Proposal 2- $ 0 (40,000 (64000) 1 18000 10000 2 24000 32000 3 32000 19000 4 11000 25000 2. 1 points QUESTION 13 1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%. Write that which proposal is better on the basis of profitability index Write only 1 or 2 Years Proposal 1-5 Proposal 2- $ (40,000 (64000) 18000 10000 24000 32000 32000 19000 11000 25000 0 1 2 3 4 2. 1 points QUESTION 14 1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12%. Write that which proposal is better on the basis of payback. Write only 1 or 2 Years Proposal 1-$ Proposal 2- $ 0 (40,000) (64000) 18000 10000 2 24000 32000 32000 19000 11000 25000 1 3 4 2. 1 points QUESTION 15 1. Muffins co. is considering to modernize its production facilities and it has two proposals under consideration. The expected cash flows associated with these projects is as follows. The discount rate associated with both the projects is 12% Write that which proposal is better on the basis of NPV. Write only 1 or 2 Years Proposal 1- $ Proposal 2- $ (40,000) (64000) 18000 24000 32000 32000 19000 11000 25000 10000 0 1 2 3 4 2. 1 points QUESTION 16 1. Single company Risk analysis Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate Variance for company A possible outcome probability Rate of return Company A (%) Company B (%) Boom 0.3 50 30 Normal 25 20 recession 0.3 15 0.4 -10 0.5 points QUESTION 17 1. Single company Risk analysis Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate Standard Deviation for company A possible outcome probability Rate of return Company A (%) Company B (%) Boom 0.3 50 30 Normal 0.4 25 20 recession 0.3 -10 15 0.5 points QUESTION 18 1. Single company Risk analysis Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate Standard Deviation for company B possible outcome probability Rate of return Company A (%) Company B (%) Boom 0.3 50 30 Normal 0.4 20 recession 0.3 -10 15 25 QUESTION 19 1. Single company Risk analysis Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate Coefficient of variation for company A. possible outcome probability Boom Normal recession 0.3 0.4 0.3 Rate of return Company A (%) Company B (%) 50 30 25 20 -10 15 0.5 points QUESTION 20 1. Single company Risk analysis Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate Coefficient of variation for company B possible outcome probability Rate of return Company A (%) Company B (9) Boom 30 Normal 0.4 20 recession 0.3 -10 15 0.3 50 25 0.5 points 0.5 points QUESTION 21 1. Single company Risk analysis Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate Variance for company B possible outcome probability Rate of return Company A (%) Company B (%) Boom 0.3 50 30 Normal 0.4 25 20 recession 0.3 -10 15 0910 nointe U. punts QUESTION 22 1. Single company Risk analysis Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate expected return for company B possible outcome probability Rate of return Company A (%) Company B (%) Boom 0.3 50 30 Normal 0,4 25 20 recession 0.3 -10 15 NI COO 0.5 points QUESTION 23 1. Single company Risk analysis Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Calculate expected return for company A. possible outcome probability Rate of return Company A (%) Company B (%) Boom 0.3 50 30 Normal 0.4 25 recession 0.3 -10 15 | 20 0.5 points QUESTION 24 1. Single company Risk analysis Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Decide which company is better to invest in on the basis of Standard deviation. (Wrire your answer as A or B) possible outcome probability Rate of return Company A (%) Company B (%) Boom 0.3 50 30 Normal 0.4 20 recession 0.3 -10 . | | | 25 15 TELESULI U. IU 13 1 points QUESTION 25 1. Single company Risk analysis Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Decide which company is better to invest in on the basis of expected return (Wrire your answer as A or B) possible outcome probability Boom Normal recession 0.3 0.4 0.3 Rate of return Company A(%) Company B (%) 50 30 25 20 -10 15 1 points QUESTION 26 1. Single company Risk analysis Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Decide which company is better to invest in on the basis of Variance. (Wrire your answer as A or B) possible outcome probability Rate of return Company A (%) Company B (%) Boom 0.3 50 30 Normal 0.4 25 20 recession 0.3 -10 15 | 1 points QUESTION 27 1. Single company Risk analysis Mr Arthur is a very big investor in oil industry. He makes his decisions after calculating all the parameters concerning to risk and return associated with any project. Recently his friend has proposed him two projects given below. Decide which company is better to invest in on the basis coefficient of variation. (Wrire your answer as A or B). possible outcome probability Rate of return Company A (%) Company B (%) Boom 0.3 50 30 Normal 0.4 25 20 recession 0.3 15 -10

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