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

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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
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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...
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