A venture capital investment is expected to yield of payoff of $100 million in five years if it survives.
The initial cost is $20 million and the appropriate discount rate is 20%. What is the average annual probability of failure that makes the investment's NPV = 0? In other words, what is the maximum annual average probability of failure before the investment is not acceptable?

A firm using the LIFO inventory valuation method in an inflationary environment will have _________ profit margins and ________ inventory turnover compared to a firm using FIFO.

During a presentation to prospective clients, Sumanta Mitra makes the following two statements
'CFAs represent the elite of all investment professionals and are most qualified to manage your money.' and 'CFA charterholders obtain their charters after passing 3 levels of exams based on a comprehensive and rigorous study program.' Which of the above statements violates Standard VII (B): Reference to CFA
Institute, the CFA Designation, and the CFA Program?

An investor is considering a 20-unit apartment building that is 10 years old and in excellent condition.
The purchase price is $700,000 with the land being valued at $50,000. The investor plans to sell the property after 4 years and anticipates paying selling costs of 6% of the sales price. The value of the property is expected to increase 2.5% annually over the 4-year holding period. The property is depreciated using the straight-line method over 27.5 years. The investor is in the 28% marginal income tax bracket and faces a 20% capital gains tax rate. The taxable gain/loss and capital gains tax due on the sale of the property at the end of year 4 would be closest to:

Which function of money is related to the precautionary demand for money?