Question: i need help with question 3 and 4 b) Assume instead you save monthly. How much should you save monthly for the next 10 years
b) Assume instead you save monthly. How much should you save monthly for the next 10 years to achieve your plan? 3. Alpha Company is evaluating the following two projects. The appropriate discount rate for both projects is 12% 0 1 2 Jets -100,000 20,000 30,000 40,000 60,000 80,000 Kawa -120,000 70.000 40.000 50,000 50,000 20,000 a) Calculate NPVs and state which one is a better project. b) Calculate the IRRs and state which project is better. c) If the projects are mutually exclusive, which project should Alpha undertake? S1.000 4. MGC Corporation issued two bonds with the following features. The yield to maturity for both bonds is 8% Bond X Bond Y Par $1.000 Maturity in years 10 Coupon rate 10% Coupon frequency semiannual Semiannual a) Calculate the current values of the bonds. b) Calculate the current yield and capital gains yield for each bond during year 1. c) which bond value is more sensitive to changes in interest rate? Why? Focus English (United States) %
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
