As you increase the length of time involved, what happens to future values? What happens to present
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- As you increase the length of time involved, what happens to future values? What happens to present values?
- Why would General Motors Corp. be willing to accept such a small amount today ($25,000) in exchange for a promise to repay four times that amount ($100,000) in 30 years? What is this a reflection of?
- Suppose a project has conventional cash flows and a positive NPV. What do you know about its payback period? Its discounted payback period? Its profitability index? Its IRR? Explain.
- How does a bond issuer decide on the appropriate coupon rate to set on its bonds? Explain the difference between the coupon rate and the required return on a bond.
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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