You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted if the required return is greaterthan the crossover rate. Year Project A Project B 0 −$ 33,000 −$ 33,000 1 21,000 13,160 2 13,000 11,000 3 13,000 24,500

A project has annual depreciation of $22,700, costs of $97,700, and sales of $143,500. The applicable tax rate is 21 percent. What is the operating cash flow?

The rate of return on which type of security is normally used as the risk-free rate of return?

Combining scenario analysis with sensitivity analysis can yield a crude form of _____ analysis.

A project that has a payback period exactly equal to the project’s life is operating at:

A 6-year project is expected to generate annual sales of 9,700 units at a price of $84 per unit and a variable cost of $55 per unit. The equipment necessary for the project will cost $381,000 and will be depreciated on a straight-line basis over the life of the project. Fixed costs are $230,000 per year and the tax rate is 21 percent. How sensitive is the operating cash flow to a $1 change in the per unit sales price?

You own 340 shares of Stock X at a price of $25 per share, 210 shares of Stock Y at a price of $48 per share, and 275 shares of Stock Z at a price of $71 per share. What is the portfolio weight of Stock Y?

Which one of the following types of analysis is the most complex to conduct?

Kim’s Bridal Shoppe has 10,200 shares of common stock outstanding at a price of $36 per share. It also has 215 shares of preferred stock outstanding at a price of $87 per share. There are 520 bonds outstanding that have a coupon rate of 5.5 percent paid semiannually. The bonds mature in 17 years, have a face value of $1,000, and sell at 93 percent of par. What is the capital structure weight of the common stock?

Saucier Company currently sells 1,208 units per month for total monthly sales of $209,600. The firm is considering replacing its current cash-only credit policy with a net 30 policy. The variable cost per unit is $106 and the monthly interest rate is .71 percent. What is the new sales quantity at the switch break-even level of sales? Assume the selling price per unit and the variable costs per unit remain constant.