Question: NUMBERS 9 AND 10 PLEASE 8. Consider a project with expected net cash flows of $23,500 for each of the project's 5 years. The NINV

NUMBERS 9 AND 10 PLEASE 8. Consider a project with expected netNUMBERS 9 AND 10 PLEASE

8. Consider a project with expected net cash flows of $23,500 for each of the project's 5 years. The NINV is $100,000 and the required return is 10%. Given this, what is the profitability index of the project? a. .96 b. 1.06 C. .89 d. 1.175 9. Consider a zero-coupon bond that has 2 years left until maturity. If the bond has a face value of $100, and YTM of 3.5%, what is the current price of this bond? Interest is compounded semi- annually. a. $93.30 b. $96.47 C. d. $99.96 10. Consider the deprecation schedule attached at the end of the test. Exactly 3 years ago, you purchased a machine for $500,000 that has since been depreciated as a 5-year MACRS class. Today, you sold it for $300,000. Given this, and a 21% tax rate what is the tax bill? a. $63,000 b. $32,760 C. $11,760 d. $35,820 $103.50

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