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Author Question: Raindrip Corp can purchase a new machine for 1,875,000 that will provide an annual net cash flow of ... (Read 96 times)

segrsyd

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Raindrip Corp can purchase a new machine for 1,875,000 that will provide an annual net cash
  flow of 650,000 per year for five years. The machine will be sold for 120,000 after taxes at the end
  of year five.
 
  What is the net present value of the machine if the required rate of return is 13.5.
  A) 513,859 B) 558,378 C) 473,498 D) 447,292

Question 2

Two investors are considering the purchase of Corporation LMQ bonds. The bonds are selling at
  their par value of 1,000 with a coupon rate of 9. Investor A decides to buy the bonds and
  Investor B does not buy the bonds.
 
  A) Investor B must have required return lower than the bond's yield to maturity.
  B) Investor A must have a required return higher than the bond's yield to maturity.
  C) Investor A must have a required return less than or equal to 9.
  D) The yield to maturity for Investor A must be higher than the yield to maturity for Investor B.


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kardosa007

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segrsyd

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Reply 2 on: Jul 10, 2018
Excellent


amandalm

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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