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1.
Question 1
 In 5 years you are going to get $2,000.
If interest rates unexpectedly rise, the present value of that future amount to
you would

1 point

### Fall

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1.
Question 1
Stock A has a beta of 0.8, whereas stock B has a beta of 1.5. Which one of these stocks would you recommend to a very risk-averse investor?

1 point

### Stock A


Stock B

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What happens to a firm’s WACC if the firm’s tax rate increases?

1 / 1 point

WACC increases 


### WACC decreases 

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1.
Question 1
An increase in net working capital means 

1 point

An increase in cash


### A decrease in cash

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1.
Question 1
Machine A costs $5,000 and depreciates on a 4-year schedule. Machine B costs $4,000 and depreciates on a 5-year schedule.  Which machine has a higher Net Fixed Asset value on the Balance Sheet in year 1?

1 / 1 point

### Machine A


Machine B

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Which project would you select based on NPVs assuming the same 5%
discount rate for both? Project A requires an initial outlay of $1,000 and
provides an annual income of $500 for 3 years. Project B requires an initial
outlay of $2,000 and yields an annual income of $900 for 3 years. 
1 point


#### Project A

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Which project would you select based on NPVs assuming the same 7% discount rate for both? Project A requires an initial outlay of $500 and provides an annual income of $600 for 3 years. Project B requires an initial outlay of $400 and yields an annual income of $700 for 3 years.
1 / 1 point


Project A


#### Project B

Correct

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* draw_circle xc, yc, r is 
* 		
* 		    d := r/2 
* 		
* 		    x  := r 
* 		
* 		    y  := 0 
* 		
* 		 
* 		

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1. What are the 3 main factors that affect Interest Rates?

War, Recession, Timing

Opportunity Costs, Inflation, Risk

Economic Conditions, Historical Price Trends, Stock Market
>> Opportunity Costs, Inflation, Risk

2. Choose between these prizes if the interest rate is 10%:

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const fv = (pv, r, t) => {
  // FV = PV * ((1+r)^t)
  return pv * Math.pow(1 + r, t);
}

const interest = (pv, fv, t) => {
  // r = sqrt[t](FV / PV) - 1
  return Math.pow(fv / pv, 1/t) - 1;
};