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Author Question: A machine that costs 1,500,000 has a 3-year life. It will generate after-tax annual cash flows of ... (Read 47 times)

james9437

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A machine that costs 1,500,000 has a 3-year life. It will generate after-tax annual cash flows of
  700,000 at the end of each year. It will be salvaged for 200,000 at the end of year 3.
 
  If your
  required rate of return for the project is 13, what is the NPV of this investment?
  A) 400,000 B) 291,417 C) 600,000 D) 338,395
  82)
  Initial Outlay
  Cash Flow in
  Period 1
  Cash Flow in
  Period 2
  Cash Flow in
  Period 3
  Cash Flow in
  Period 4
  4,000,000 1,546,170 1,546,170 1,546,170 1,546,170
  The Internal Rate of Return (to nearest whole percent) is
  A) 20. B) 10. C) 18. D) 24.

Question 2

Jackson Corp. 1,000 par value bonds currently sell for 752.18. The coupon rate is 7 percent, paid semiannually.
  If the bonds have 6 years before maturity, what is the yield to maturity on the bonds?
 
  What will be an ideal response?


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james9437

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Reply 2 on: Jul 10, 2018
Gracias!


T4T

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Reply 3 on: Yesterday
:D TYSM

 

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