1. You must find the payback for a project, and you have misplaced some of the information that you were given. You know that the project will generate positive cash flows of $60,000 per year at the end of each of the next 5 years, that its NPV is $75,000, and that the company’s WACC is 10%. What is the project’s regular payback?
2.11 years
2.27 years
2.38 years
2.54 years
3.08 years
2. The risk that is limited to a particular industry is also known as _____.?
a. ?combined risk
b. ?non-diversifiable risk
c. ?market risk
d. ?unsystematic risk
e. ?relevant risk