Question: QUESTION 26 Capital Budgeting Techniques (12 points, 4 points each) You are considering a project that costs $100,000 today but will provide you with
QUESTION 26 Capital Budgeting Techniques (12 points, 4 points each) You are considering a project that costs $100,000 today but will provide you with $40,000 per year for 3 years. The firm's required rate of return (WACC) on the project is 10%. The payback period is closest to: O 2.2 years more than 3 years O 2 years O 2.5 years QUESTION 27 What is the current price of a bond (closest to) that matures in 10 years, has a $1000 face value, has an annual coupon rate of 12%, if rates on similar bonds have declined to 10%? I O $1,000 $887 O $1,236 O $1,123
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