Homework 1 - c A B C NPV= \$0.18 \$162.69 \$77.76 d A B C IRR=...

This preview shows page 1. Sign up to view the full content.

Question Part 1 a 400 b \$1,111.00  c \$896.06  PV CF Period d \$1,458.65  \$277.78  300 1 \$342.94  400 2 \$396.92  500 3 \$441.02  600 4 2 Interest rate a \$1,815.42  4% b \$1,623.11  5% c \$1,458.80  6% d \$1,196.36  8% e \$850.61  12% 3 a Year A B C 0 -1000 -1000 -1000 1 100 500 200 2 200 400 300 3 300 300 500 4 400 200 300 5 500 100 200 Project B will have the greatest present value because the greater CF  are earlier in the project's life b The NPV's discounted at 0% would all equal 500
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: c A B C NPV= \$0.18 \$162.69 \$77.76 d A B C IRR= 12.01% 20.27% 15.02% 4 Coupon Years to Discount Rate Maturity Rate Bond A 9% 10 10% Bond B 18% 10 10% Bond C 9% 2 10% Bond D 18% 10 8% Bond A \$938.55 Bond B \$1,491.57 Bond C \$982.64 Bond D \$1,671.01...
View Full Document

{[ snackBarMessage ]}

What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern