Projects S and L both have an initial cost of $10,000, followed by a series of positive cash inflows. Project S’s undiscounted net cash flows total $20,000, while L’s total undiscounted flows are $30,000. At a WACC of 10%, the two projects have identical NPVs. Which project’s NPV is more sensitive to changes in the WACC?单项选择题

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Part 1Krypton Engineering expects to have net profit next year of $ 30.21$30.21 million and free cash flow of $ 22.19$22.19 million. ​ Krypton's marginal corporate tax rate is 40 %40%.a. If Krypton increases leverage so that its interest expense rises by $ 6.2$6.2 ​million, how will its net profit​ change?b. For the same increase in interest​ expense, how will free cash flow​ change? Part 1a. If Krypton increases leverage so that its interest expense rises by $ 6.2$6.2 ​million, how will its net profit​ change?Net profit will fall to ​$[input]enter your response here million. ​ (Round to two decimal​ places.)

Question text Answer the following questions by filling in the blanks. Don't use any spaces, commas or "$" signs. Give answers as fractions using the forward slash (e.g. 1/2 or 3/4) if the answer is not an integer. Do NOT use brackets unless specified. Use - for any negatives. [Total: 4+3 = 7 marks] Lin receives a performance bonus at work of $3500. She is considering investing the money, and has seen the following accounts advertised: a. Determine the value of her investment after 5 years by completing the following steps. (4 marks) i. in SafeBank? Total interest [math: I=]$Answer 1 Question 6[input]Total amount [math: A=] $Answer 2 Question 6[input] ii. in OzBank? Total amount is [math: A=] $[math: 3500×][math: R 5], where the value of [math: R] is Answer 3 Question 6[input]Therefore [math: A], correct to 2 decimal places is $Answer 4 Question 6[input] b. Lin would like to buy a new sofa worth $4500. (3 marks)How many years would it take her to reach this target in SafeBank? Interest required is [math: I=]$Answer 5 Question 6[input] The value for [math: T] to 2 decimal places is Answer 6 Question 6[input] Therefore the least exact number of years Lin will have to wait is Answer 7 Question 6[input] years.

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Part 1Consider a simple firm that has the following​ market-value balance​ sheet:[table] Assets | | Liabilities end equity $ 1,020$1,020 | | Debt | $ 450$450 | | Equity | 570570 [/table]Next​ year, there are two possible values for its​ assets, each equally​ likely: $ 1,210$1,210 and $ 970$970. Its debt will be due with 4.9 %4.9% interest. Because all of the cash flows from the assets must go to either the debt or the​ equity, if you hold a portfolio of the debt and equity in the same proportions as the​ firm's capital​ structure, your portfolio should earn exactly the expected return on the​ firm's assets. Show that a portfolio invested 44 %44% in the​ firm's debt and 56 %56% in its equity will have the same expected return as the assets of the firm. That​ is, show that the​ firm's pre-tax WACC is the same as the expected return on its assets. Part 1If the assets will be worth $ 1,210$1,210 in one​ year, the expected return on assets will be [input]enter your response here ​%. ​(Round to one decimal​ place.)

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