Given That Log 2 5 = 2 $\log _ { 2 } \sqrt [ 8 ] { 5 }$

question 2

Multiple Choice

Given that log 2 5 = 2.3219 and log 2 7 = 2.8074, evaluate the expression $\log _ { 2 } \sqrt [ 8 ] { 5 }$ by using properties: For positive real numbers b , r and s , where b $F$ 1, and for any real number p , $\log b r s = \log b r + \log b s$ $\log b \frac { r } { s } = \log b r - \log b s$ $\log b r ^ { p } = p \left( \log _ { b } r \right)$

• A) 0.1672
• B) 0.2827
• C) 0.2902
• D) 0.2602

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Definitions:

Cost of Capital

The minimum return that a company must earn on its investments to maintain its market value and satisfy its creditors and investors.

Firm's Value

The total worth of a company, determined by its financing structures, including equity and debt, and the present value of its expected future cash flows.

IRR Method

A financial analysis technique used to evaluate the desirability of investments or projects based on their internal rate of return, aiming to identify the profitability and potential return.

Time Value of Money

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.