This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A machine that costs 1,500,000 has a 3-year life. It will generate after-tax annual cash flows of ... (Read 74 times)

james9437

  • Hero Member
  • *****
  • Posts: 568
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
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kishoreddi

  • Sr. Member
  • ****
  • Posts: 329
    • Your online Help in Biology and chemistry
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.
Answer Preview
Only 25% of students answer this correctly


james9437

  • Member
  • Posts: 568
Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review

bimper21

  • Member
  • Posts: 309
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

The human body produces and destroys 15 million blood cells every second.

The geological timescale and an overview of the history of life on Earth The geological timescale and an overview of the history of life on Earth
Gametic life cycle, as illustrated by diatoms Gametic life cycle, as illustrated by diatoms
Major reservoirs and flows of the hydrological cycle. Major reservoirs and flows of the hydrological cycle.
Change in Annual Precipitation Over Land, 1901-2010 Change in Annual Precipitation Over Land, 1901-2010
Ocean water flows vertically and horizontally, influencing climate Ocean water flows vertically and horizontally, influencing climate
ECG machine. ECG machine.
Video: Cellular Respiration & Glucose Mobilization (Glucose transport & Phosphorylation of Glucose)

For a complete list of videos, visit our video library