Finance and Accounting

timer Asked: Oct 19th, 2015

Question description

Define each of the variable or terms in this equation? 

E(Ri)=Rf+[E(Rm)-Rf]X Bi

Calculate the E9Ri), assuming that E(Rm) equals 12%, Rf equals 6%, and Bi equals 1.2.?

Describe the differences between an ordinary annuity, an annuity due, and a perpetuity?

Assume that a project has a negative net present value (NPV) of $500 and an internal rate or return (IRR) of 10%. Is the discount rate used to calculate the NPV higher than, lower than, or equal to 10%? Compare and contrast these two techniques, using this example, and focusing on IRR when the NPV is positive, zero and negative.

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