Question: a. A project that will last for 12 years is expected to have equal annual cash flows of $104,500. If the required return is 8.2

a. A project that will last for 12 years is expected to have equal annual cash flows of $104,500. If the required return is 8.2 percent, what maximum initial investment would make the project acceptable?

b. An investment had a nominal return of 11.4 percent last year. If the real return on the investment was only 7.9 percent, what was the inflation rate for the year?

c. Whatever, Inc., has a bond outstanding with a coupon rate of 5.88 percent and semiannual payments. The yield to maturity is 4.5 percent and the bond matures in 23 years. What is the market price if the bond has a par value of $1,000?

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