Question: The initial outlay or cost is $1,000,000 for a four year project . The respective future cash inflows for years one, two, three, and four

The initial outlay or cost is $1,000,000 for a four year project . The respective future cash inflows for years one, two, three, and four are $500,000, $300,000, and $300,000. What is the payback period without discounting cash flows?

A. About 2.50. B. About 2.67. C. About 3.67. D. About 4.50

Ten years ago, Bacon Signs Inc. issued a 25-year, 8% annual coupon bonds with a $1,000 face value each. Since then, interest rates in General have fallen and the yield to maturity on the Bacon bond is now 7%. Given this information, what is the price today for a Bacon Signs, Inc. bond?

A. 1,000. B. 1,116.54. C. 1,091.08. D. 914.41

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