Use the Following Information to Answer the Question(s)below

question 29

Multiple Choice

Use the following information to answer the question(s) below.
Nielson Motors has a debt-equity ratio of 1.8,an equity beta of 1.6,and a debt beta of 0.20.It is currently evaluating the following projects,none of which would change Nielson's volatility. (All amounts are in $millions. )
-In order for Nielson Motors to be willing to invest,project 5 must have an NPV greater than:

• A)$10.0 million.
• B)$12.5 million.
• C)$18.0 million.
• D)$22.5 million.

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Definitions:

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Economic systems in which prices for goods and services are determined by the open market and by consumers, with minimal governmental intervention or regulation.

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The international network of economies and markets, interconnected and influenced by global trade, investment, and information technology.

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Individuals who have received specialized training, education, or experience that allows them to perform specific tasks or jobs.

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