Major medical insurance usually requires the insured to pay a percentage of all losses after a deductible up to an out-of-pocket limit

You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts for the project are: CF0= - 100 ; CF1-CF10=+15. On the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.4. Assuming that the rate of return available on risk-free investments is 4 percent and that the expected rate of return on the market portfolio is 12 percent, what is the net present value of the project?

A) -25.29 B) 0 C) 15.67 D) 21.5

Which of the following is a benefit of the target costing approach?

A) The product development process is continuously guided by the top management. B) It produces a superior product with unique product benefits. C) It decreases the likelihood that low-margin products will be introduced. D) It shortens the product development cycle.