A project engineer is proposing a project to their management team for funding. The engineer has calculated a benefit/cost ratio for the proposed project of 1.920. What should the project engineer recommend and why?

A company uses a MARR of 12% to evaluate all potential investments. For a proposed project, you calculate the internal rate of return. Which internal rate of return value would cause you to recommend NOT pursuing the project?

A deposit of $1,000 is made into an account that earns 8% interest. How much will be in the account in 5 years if no additional deposits or withdrawals are made?

If interest rates rise 1% and if you own a bond with a maturity of 30 years and a duration of 20 with a 5% yield your bond price will change by approximately what percentage amount?

Using the information from question 14 calculate the WACC assuming a cost of debt of 12%, tax rate of 30% and a cost of equity of 15%.

For a company whose target capital structure calls for 50% debt and 50% common equity, which of the following statements is CORRECT?

If a company has sales in a foreign country and would like to hedge exchange rate risk as it brings the sales proceeds back to the home country, what tools can the company utilize to manage this risk?

Panther Corp. recently paid a dividend of $1.50. It expects to have nonconstant growth of 10% for two years followed by a constant rate of growth of 5% thereafter. The firm’s required return is 10%. What is the firms intrinsic value today?

The future earnings, dividends and common stock price of Miami Tech are expected to grow 8% per year. Miami Techs common stock currently sells for 25$ per share; its last dividend was $2 and it will pay a $ 2.25 dividend at the end of the current year. If the firms beta is 1.5, the risk free rate is 5% and the average return on the market is 10%, what is the firms cost of equity using the CAPM approach? If the firms bonds earn a return of 7%, based on the bond yield plus risk premium approach, what will be the required return on equity? Using the constant DDM model what is the intrinsic value of the stock at present (use CAPM for required return)?

Assume that the risk-free rate is 4% and the market risk premium is 5%. What is the required rate of return for the overall stock market? What is the required return on a stock with a beta of 1.5?