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Just Need Answers Need ASAP Question 11 What is the market called that allows shareholders to...

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Question 11
What is the market called that allows shareholders to resell their shares to other investors?

Select one:
a. Primary
b. Proxy
c. Secondary
d. Inside
e. Initial

Question 12
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If a project with conventional cash flows has a profitability index of 1.0, the project will:

Select one:
a. never pay back.
b. have a negative net present value.
c. have a negative internal rate of return.
d. produce more cash inflows than outflows in today's dollars.
e. have an internal rate of return that equals the required return.

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You are considering an investment for which you require a 14 percent rate of return. The investment costs $61,900 and will produce cash inflows of $26,000 for three years. Should you accept this project based on its internal rate of return? Why or why not?

Select one:
a. Yes, because the IRR is 12.51 percent
b. Yes, because the IRR is 13.65 percent
c. Yes, because the IRR is 13.67 percent
d. No, because the IRR is 12.51 percent
e. No, because the IRR is 13.65 percent

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Which one of the following is an indicator that an investment is acceptable?

Select one:
a. Modified internal rate of return equal to zero
b. Profitability index of zero
c. Internal rate of return that exceeds the required return
d. Payback period that exceeds the required period
e. Negative average accounting return

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You are considering the following two mutually exclusive projects. The crossover point is _____ and Project _____ should be accepted at a 12 percent discount rate.


Picture

Select one:
a. 11.07 percent; B
b. 11.38 percent; A
c. 11.38 percent; B
d. 14.02 percent; A
e. 14.02 percent; B
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Answer #1

Q.11 Secondary market is the place where buying and selling of existing shares will takes place. Investors who already own shares can sell to other investors.

Answer C

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