Question: Most recent bond with a face value of ( $ 1000 ) sold for ( $ 950 ). This bond pays yearly coupon payments, and


Most recent bond with a face value of \\( \\$ 1000 \\) sold for \\( \\$ 950 \\). This bond pays yearly coupon payments, and the coupon rate is \6. The bond has a remaining maturity of 15 years. The beta for Sunny Inc. is 2. The S\\&P 500 has an expected return of \12 and the T-bill is \3. Please answer the following questions in a word document and upload to Canvas. Q1) Calculate NPV (remember to include the salvage value as part of the \\( 5^{\\text {th }} \\) year's cash flow) Q2) Calculate IRR Q3) Is this a good investment for Sunny Ine.? Why or why not? Sunny Inc. is trying to decide whether investing in Project A is a good idea. This project will last 5 years and will not exist after that. Any salvage value will be considered as an additional cash flow to be added to the \\( 5^{\\text {th }} \\) year's free cash flow. The project requires a \\( \\$ 1,000,000 \\) initial investment (today) and has the following projected free cash flows. The project is expected to have a salvage value of \\( \\$ 200,000 \\) (at the end of \\( 5^{\\text {th }} \\) year) Sunny Inc provides the additional information: D/E ratio: 0.7
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