Capital budgeting questions | Business & Finance homework help


 Question 1
Describe the chief asset pricing copy (CAPM) and how it is used in chief budgeting decisions.
Your defense should be at last 200 utterance in tediousness.

Question 2
You  win the $20 favorite specify lottery, and you own a excellent of presentation an  amount of specie per year for the contiguous 20 years or a tasteclose reimbursement now.  The tasteclose reimbursement that the specify offers you is $9.82 favorite.
What allowance admonish is the specify using?
Should you transfer the specie or the annuity?
Your defense should be at last 200 utterance in tediousness.

Question 3
In provisions of chief budgeting, teach the estrangement betwixt miss and precariousness.
Your defense should be at last 200 utterance in tediousness.

Question 4
What attached complexities initiate when multinational corporations judge chief plans on a global premise?
Your defense should be at last 200 utterance in tediousness.

Question 5
Project  C has an expected appraise of $500 and a criterion discontinuance of $50.  Project D has an expected appraise of $300 and a criterion discontinuance of $10.  Comment on the desirability of these plans.
Your defense should be at last 200 utterance in tediousness.

Question 6
The Petram Company has estimated expected coin glides for 1996 to be as follows:

Probability Coin glide
.10 $120,000
.15 $140,000
.50 $150,000
.15 $180,000
.10 $210,000
Calculate the aftercited:
expected appraise
criterion discontinuance
coefficient of variation
the verisimilitude that the coin glide allure be close than $100,000
Your defense should be at last 75 utterance in tediousness.

Question 7
The Widget Company has estimated the aftercited fruits possibilities for the year:
Sales Probability
100 0.15
150 0.20
220 0.30
290 0.20
310 0.15
Find the expected fruits.
Find the criterion discontinuance.
Find the coefficient of variation
Your defense should be at last 75 utterance in tediousness.

Question 8 
1. A two-period plan has the aftercited probabilities and coin glides:
Probability Cash Flow
Period 1: .25 500
.50 600
.25 700

Period 2: .30 300
.50 500
.20 700
2. The allowance admonish is seven percent, and the judicious bombardment is $1,000. How ample is the expected NPV of this plan? 

Your defense should be at last 75 utterance in tediousness.