A bakery is considering the purchase of new machine that will produce 3 times faster than
the current one. The cost of the machine is $20,000 with a 4 years useful life, and it is estimated to
produce
1- If Jack going to deposit $5000 in his bank account with an annual interest rate of 12% for 4 years,
what is the sum of the mount is he going to receive at the end of that period?
FVSS= PV CF r,t
=
1- You have 7% coupon rate with a face value of $1000. The bond matures in six years. The market
rate is 10% and the coupon is paid annually.
What is the current price of the bond?
Bond Value = Presen
Additional Problems
Note: I will solve these problems in class. Solutions will not be posted online.
1.
Given a partial balance sheet and income statement Jaaski, Inc.
Balance Sheet
Stockholders Equit
Chapter 1
Introduction to
Corporate Finance
Managerial Finance FIN 322
Key Concepts and Skills
Know the basic types of financial management
decisions and the role of the financial manager
Know the fin
Chapter 2
Financial Statements,
Taxes, and Cash Flow
Managerial Finance FIN 322
Key Concepts and Skills
Know the difference between book value and
market value
Know the difference between accounting i