Part 1: Answer TRUE or FALSE

Questions:

6. Deep Pockets Mining unexpectedly discovered an extremely rich vein of gold. Common shareholders will benefit from the increased profits that will be generated from this find.

10. Just because the cash flows of a project are positive doesn't mean the NPV is positive.

Part 2: Multiple Choice

11. Calculate the NPV of a 20-year project with a cost of $400,000 and annual cash flows of $50,000 in years 1-10 and $25,000 in years 11-20. The company's required rate of return is 10%. A. ($33,547) B. ($18,547) C. $0 D. $18,547 E. $33,547

Part 3: Analysis questions show all work

21. Dhalia Corporation issued $100 million bonds that mature in 30 years and have a 5% coupon rate that is paid annually. If the bonds were sold to yield 3.4%, determine the price of the bonds at the end of year 25.

22. You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the discount rate is 7 percent? What if the discount rate is 10 percent? (14 points)

23. Cellular Talk is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 25% a year for the next three years and then decreasing the growth rate to 6% per year. The company just paid its annual dividend in the amount of $0.80 per share. What is the current value of one share of this stock if the required rate of return is 17%? (14 points)

24. You wish to have $400,000 at the end of twenty-five years. In the last ten years, you contribute $1,000 semi-annually at a rate of 5.8% compounded monthly. During the middle ten years, you withdraw $750 quarterly at a rate of 4.5% compounded annually. Given this information, determine the initial deposit that has to be made at the start of the first five years at a rate of 4% compounded monthly. (14 points)

Show all work need all questions answered ASAP please. Thank you!