1. Which methodology do you like in the forecasting? Why?
2. A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 Project S -$1,000 $893.81 $250 $10 $5 Project L -$1,000 $10 $250 $420 $770.88 The company's WACC is 8.5%. What is the IRR of the better project?
3. Present and prospective shareholders are interested in increasing their wealth. Therefore, they are mainly concerned with a firm's _________ A) leverage. B) risk and return. C) profitability. D) liquidity. E) price per share.