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:

Shift Blame

The act of transferring responsibility for a fault or wrong to another person or entity.

Person-group Discrimination Discrepancy

A psychological term describing the difference between discriminatory behaviors targeted at an individual versus those directed at a group.

Ingroup Bias

The tendency to favor one's own group, or ingroup, over other groups, or outgroups, which can affect judgement and behavior.

Stigma Consciousness

The awareness and anticipation of societal stigma, leading to behavior that is often aimed at avoiding discrimination.