QUESTION 16 What is the risk premium for Semper Fun Sports stock if the stock has a beta of 1.33, the expected return on the market is 15.78 percent, the risk-free rate is 6.32 percent, and inflation is 4.19 percent? a. 14.71% (plus or minus 0.05 percentage points) b. 12.58% (plus or minus 0.05 percentage points) 14.12% (plus or minus 0.05 percentage points) d. 20.99 (plus or minus 0.05 percentage points) e. None of the above is within 0.05 percentage points of the correct answer QUESTION 17 Pierre Wineries is evaluating a project that would require an initial investment in equipment of $80,000 and that is expected to last for 6 years. MACRS depreciation would be used where the depreciation rates in years 1, 2, 3, 4 and 5 are 40.0%, 25.0%. 15.0%. 10.0%, and 10.0%, respectively. For each year of the project. Pierre Wineries expects relevant annual revenue associated with the project to be $49,000 and relevant annual costs associated with the project to be $30.000. The tax rate is 50 percent. What is iX plus y) if X is the relevant operating cash flow (OCF) associated with the project expected in year 1 of the project and Y is the relevant OCF associated with the project expected in year 3 of the project? a. $41,000 (plus or minus 5100) b. 528.000 (plus or minus 5100) c. $39.000 (plus or minus 5100) d. 554.000 (plus or minus 5100) e. None of the above is within $100 of the correct