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:

Andrew Huxley

A British physiologist and biophysicist awarded the Nobel Prize for his work on the nerve impulse and muscle contraction.

Nobel Prize

Prestigious international awards given annually in several categories including Physics, Chemistry, Medicine, Literature, and Peace, recognizing significant achievements.

Motor Neurons

Motor neurons are nerve cells responsible for conveying signals from the brain and spinal cord to muscles, instructing them to contract and thus enabling movement.

Nerve Impulses

The electrical signals that pass along the nerve fibers, facilitating communication between neurons or between neurons and muscles.