Which one of the following costs was incurred in the past, cannot be recouped, and will not be included in the analysis of a new project?

Consider a project with an initial asset cost of $168,000. Assume straight-line depreciation to zero over seven years. At the end of the project’s four-year life the asset can be sold for $95,000. What is the aftertax salvage value if the project is sold after four years? Use a tax rate of 24 percent. You may use the following Excel workbook for your calculations. Any work in Excel or on scrap paper does not have to be submitted. Blank Workbook.xlsx

Which of these is not considered a class of stock?

The risk-free rate of return is 2.7 percent and the market risk premium is 6.9 percent. General Motors has a beta of 1.08, calculate its cost of equity. You may use the following Excel workbook for your calculations. Any work in Excel or on paper does not have to be submitted. Blank Workbook.xlsx

This question requires uploaded work.  You will upload the work for this question after completing the test to the assignment in Canvas called “Test 2 Uploaded Work”.   Find the derivative of

A person who maintains an inventory from which he or she buys and sells securities is called a ____________.

Cellco Partnership has a capital structure of 46 percent common stock, 5 percent preferred stock, and the rest in debt. Its cost of equity is 15.8 percent, the cost of preferred stock is 8.3 percent, and the aftertax cost of debt is 6.8 percent.  What is the Weighted Average Cost of Capital (WACC)? You may use the following Excel workbook for your calculations. Any work in Excel or on scrap paper does not have to be submitted. Blank Workbook.xlsx

What are the two cases when NPV and IRR may not produce the same decision result?

A project has an initial cash outflow of $42,600 and produces cash inflows of $17,680, $19,920, and $15,670 for Years 1 through 3, respectively. What is the NPV at a discount rate of 12 percent? You may use the following Excel workbook for your calculations. Any work in Excel or on scrap paper does not have to be submitted. Blank Workbook.xlsx

A project has cash flows of −$161,900, $60,800, $62,300, and $75,000 for Years 0 to 3, respectively. The required rate of return is 13 percent. Because the internal rate of return for the project is  ________ percent you should ________ the project. You may use the following Excel workbook for your calculations. Any work in Excel or on scrap paper does not have to be submitted. Blank Workbook.xlsx