Considered lagging economic indicator

Assignment Help Financial Management

Reference no: EM131904340

1. Which of the following is NOT considered a lagging economic indicator?

prime rate

change in CPI for services

industrial production

commercial and industrial loans

consumer expectations index

2. Your division is considering two projects with the following net cash flows (in millions):

0 1 2 3

Project A -$30 $10 $15 $22

Project B -$25 $15 $14 $11

If the WACC were 5% and Projects A and B were mutually exclusive, which project would you choose?

a) Project A

b) Project B

c) Neither

Reference no: EM131904340

Questions Cloud

Constant growth stock valuation model : what is the most you should pay for the stock according to the constant growth stock valuation model.

What was the purchase price of the furniture : What was the purchase price of the furniture?

How the value of firm is obtained : Explain using your own words how the value of a firm is obtained (valuation)

What is the expected return on shares of the law firm : what is the expected return on the shares of the law firm according to the CAPM?

Considered lagging economic indicator : Which of the following is NOT considered a lagging economic indicator?

What is best guess as to rate of return on stock : A stock with a beta of 1.2 has an expected rate of return of 16%. what is your best guess as to the rate of return on the stock?

What price will the stock reach equilibrium : At what price will the stock reach an “equilibrium” at which it is perceived as fairly priced today?

What must be investors expectation of the price of stock : If the stock is perceived to be fairly priced today, what must be investors’ expectation of the price of the stock at the end of the year?

What was the inflation rate for the period : If the nominal GDP was reported at $133.2 billion and real GDP was reported at $129.8 billion, what was the inflation rate for the period?

User Account

All Pages