1. Suppose a firm is evaluating two mutually exclusive projects. Which of the following is not a valid option?
a. accept both projects
b. reject both projects
c. accept project a and reject project b
d. reject project a and accept project b
2. A firm forecasts the euro's value as follows for the next year: Possible Percentage Change Probability 2% 10% 3% 50% 6% 40% The annual interest rate on the euro is 7 percent. The expected value of the effective financing rate from a U.S. firm's perspective is about:
a. 8.436 percent
b. 11.112 percent
c. 10.959 percent.
d. 11.541 percent.