Chapter 4 do #3, Calculating Present values: For each of the following, compute the present value: Present Value $10,823.02 $29,411.69 $128,928.43 $72,388.42 Years 12 4 16 21 Interest Rate 4% 9% 12% 11% Future Value 17,328 41,517 790,382 647,816
PV=FV/(1+
Problem #3, Lycan, Inc. has 7 percent coupon bonds on the market that have 8 years left to maturity. The bonds make annual payment. If the YTM on these bonds is 9 percent, what is the current bond price? The price any is any bond is the PV of the interest
BUSN 379
Week 4 Homework Chapter 8: 3,4,5,6
3. Calculating Payback. Global Toys Inc. imposes a payback cutoff of
three years for its international investment projects. If the company has
the following two projects available, should it accept either of the
1. (TCO 1) ) Likeline, Inc., has sales of $445,000, costs of $173,000, depreciation expense of $72,000,
interest expense of $36,000, and a tax rate of 35 percent. What is their net income? (Points : 20)
Sales
$445,000
Less:
Cost
$173,000
Depreciation
$72,