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

question 92

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 3 must have an NPV greater than:

• A)$12.5 million.
• B)$15.0 million.
• C)$22.5 million.
• D)$27.0 million.

---

Definitions:

Payroll Tax

Tariffs levied on employers and employees alike, generally calculated by a fraction of the workers' salaries.

Regressive

Describes a tax or policy that disproportionately affects lower-income individuals, typically by taking a larger percentage of their income.

Payroll Tax

Burdens placed on employers along with their employees, customarily determined as a percentage of the staff's wages.

Corporate Profits Tax

A tax imposed on the income or profit of corporations.