2. Finance
3. 1 a firm is considering the following independent projects the...

# Question: 1 a firm is considering the following independent projects the...

###### Question details

1. A firm is considering the following independent projects.  The total amount of capital available for investment is $377.  Project Investment Present value offuture cash flows NPV P.I. A$101 $136$35 1.35 B $158$181 $23 1.15 C$140 $217$77 1.55 D $176$214 $38 1.22 E$129 $189$60 1.46

Which projects should the firm accept?

Select one:

2. To what should your realised return from a share be compared in order to determine whether it was a worthwhile investment?

Select one:

Project Beta is a 7-year project which requires an initial outlay of $5,000. This outlay will be depreciated using straight-line depreciation over the life of the project. It will generate incremental revenue of$2000 per year and incremental costs (excluding depreciation) of \$400.  The tax rate is 30%.

What is the project's annual after-tax incremental earnings?

Select one: