1. How does the Dodd-Frank Act of 2010 compare to the Glass-Steagall Act of 1933?
2. __________ are decisions that are unique to the venture and allow for innovations that impose competitive barriers.
a. Business concepts
b. Board-room decisions
c. Proprietary approaches
d. Executive decision
3. A firm with a WACC of 10% is considering the following mutually exclusive projects:
0 1 2 3 4 5
Project A -$300 $80 $80 $80 $210 $210
Project B -$450 $200 $200 $40 $40 $40
Which project would you recommend? Select the correct answer.
I. Neither A or B, since each project's NPV < 0.
II. Both Projects A and B, since both projects have IRR's > 0.
III. Project B, since the NPVB > NPVA. IV. Project A, since the NPVA > NPVB.
V. Both Projects A and B, since both projects have NPV's > 0.