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John invested $1,000 in a risky investment and Bill invested $1,000 in a less risky investment, One year later, Bill's investment is worth $1,030. Which of the following statements is most correct

John invested $1,000 in a risky investment and Bill invested $1,000 in a less risky investment, One year later, Bill's investment is worth $1,030. Which of the following statements is most correct? Select one: a. The worth of John's investment cannot be determined with the information given. b. John's investment must be worth more than $1,030 because of the risk-return tradeoff, given that John's investment was more risky. C. If John's investment is worth less than $1,030, then John was irrational to invest in the risky project. 0 d. If John's investment is worth more than $1,030, then Bill was irrational to invest in the less risky investment,
A corporation's capital losses can be carried back three years and, if any loss still remains, it may be carried forward Select one: a. 7 year b. 5 year c. 3 year O d. 1 year
DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the payback period of this project Select one: O a. 4.00 years O b. 2.50 years C. 2.91 years d. 3.09 years F
In making financial decisions, the relevant tax rate is the Select one: a. previous year's tax rate b. average (effective) tax rate C. marginal tax rate d. maximum allowable tax rate

Apr 16 2021 View more View Less

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