Investment appraisal of pubic service project

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Reference no: EM132073979

1. Which of the following statements about calls and puts is incorrect?

A. Options do not provide any funding to the company.

B. Exchange-traded options are highly standardised.

C. Options are generally issued by companies.

D. Options are generally traded on an organised exchange. why c is not correct, what do options usually be issued by whom and why options don not provide any funding to the company?

2. Which of the following analysis methods could be used for investment appraisal of a pubic service project such as building a hospital or a prison?

a) Discounted cash flow using public project discount rates

b) Cost benefit analysis

c) Cost effectiveness analysis

d) Payback using discounted cash flow set by the treasury

Reference no: EM132073979

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