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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 57 times)

james9437

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on: Jul 10, 2018
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?
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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kishoreddi

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Reply #1 on: Jul 10, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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james9437

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Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review

robbielu01

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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