1. AAA Inc.'s stock has a 40% chance of producing a 30% return, and 60% chance of producing a 5% return. (a) What is the firm's standard deviation? (b) What is the firm’s coefficient of variation?
2. Project L costs $55,000, its expected cash inflows are $12,000 per year for 11 years, and its WACC is 12%. What is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.
3. Project L costs $40,000, its expected cash inflows are $8,000 per year for 8 years, and its WACC is 12%. What is the project's MIRR? Round your answer to two decimal places. Do not round your intermediate calculations.