Table 10.1 shows the cash flows and discounted cash flows for three mutually exclusive projects available to a company. Assume an interest rate of 5%. Which project should the company choose if they want to maximize their return?

The labor force is the

A) total population divided by the number of employed people. B) number of employed people plus the number of unemployed people. C) working-age population minus the number of unemployed people. D) number of employed people minus the number of unemployed people. E) number of employed people in the working-age population.

If an asset's beta is high, its

A) diversifiable risk and expected return are high. B) nondiversifiable risk and expected return are high. C) diversifiable risk is high; its expected return is low. D) nondiversifiable risk is high; its expected return is low. E) total risk is high; its return could be any amount.