Question: A B D E F G H 1 Question 4 Assume a project has the following series of cash flows. The opportunity cost of capital
A B D E F G H 1 Question 4 Assume a project has the following series of cash flows. The opportunity cost of capital is 5.125%. Should the company proceed with the project? Period Cash Flows IRR 0$ (65,000,500.00) 7 1$ 13,275,000.00 2 2$ 13,275,000.00 3 3 $ 11,008,000.00 4 4 $ 10,972,000.00 5 5 $ 9,500,000.00 6 6 S 9,500,000.00 7 7 $ 6,750,250.00 18 8 $ 5,530,875.00 49 9 $ 3,387,500.00 SO 10 $ 2,275,000.00 51 52 Type Answer Here 53 54 SS. Question 5 56 Calculate the approximate price of a 15 year, 6%, $1,000 face value bond. Assume interest rates are 6% across all maturities. 57 SB Type Answer here 59 60 61 Question 6 62 Calculate the yield to maturity on a 3-year, 4.125% coupon, $1,000 face value bond that is trading at a dollar price of $975.50. 63 64 Type Answer Here 65 66 67 Question 7 68 What is the latest rate of inflation in the United States? Hint: Look up the Consumer Price Index (CPI). Your answer should be in percentage terms Sheet1
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