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.

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Definitions:

Temporary Basis

A term denoting employment or an assignment that is intended to last for a limited period of time, often used to fill short-term needs in workforce.

Triple Bottom Line

The assessment of the economic, social, and environmental performance of organizations.

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