$1$a$.)$ HomeHealthcare has just borrowed $$2,000,000$ on a five$-$year, annual payment term loan at a $15\%$ rate. The first payment is due one year from now. Construct the amoritization schedule for this loan.

PMT$=?$

$1$b$.)$ Suppose that you are offered a $14-$year, $10\%$ annual coupon, $$1000$ par value bond at a price of $$1500.$ What is the yield to maturity of the bond?

RATE$=?$

$1$c$.)$ What is the value of a $14-$year, $10\%$ semi$-$annual coupon, $$1000$ par value bond if the nominal rate $($the YTM$)$ is $6\%?$ The bond is not callable

PV$=?$

$1$d$.)$ Compare the price risk of two bonds, both of which have $10\%$ annual coupon and a $$5000$ face value. The first bomd matures in $5$ years, the second in $30$ years. Using the Data Table function in Excel and also create two line charts to see the Sensitivity of Price to Interest Rate Change

Data$-$What$-$If$-$Analysis$-$Data Table

$1$e$.)$ The Hospital for Ordinary Surgery is considering a new lab. The lab will cost $$5$ million and is expected to generate the cash flows shown below. If the hospital's cost of funds is $10\%,$ answer the following questions

$$ Start: $-5000$

$$ Year $1$: $1700$

$$ Year $2$: $1500$

$$ Year $3$: $1500$

$$ Year $4$: $1400$

a$.)$ What is the return expected on this investment measured in dollar terms $($NPV$).$ Explain your answer in economic terms.

b$.)$ What is the return on this investment measured in percentage terms $($IRR$)?$ What is the Modified Internal Rate of Return $($MIRR$)?$ Which one is a better indicator or a project's profitabiltiy? Why?

c$.)$ Should this investment be made? Explain your answer.

$1$f$.)$ if two mutually exclusive projects, A and B have different lives, and if the projects can be repeated, then it is necessary to deal, explicitly with those unequal lives. use the replacement chain $($common life$)$ approach to deal with the following problem. Suppose American Dental Equipment Corporation is planning to modernize its production facilities, and as part of the process, it is considering either installing a conveyor system $($Project A$)$ or using forklift trucks $($Project B$)$ to move materials from the parts department to the main assembly line. The following exhibit shows the expected net cash flows. Please calculate the NPV$\text{'}$s for these two mutually exclusive alternatives if the firms corporate cost of capital is $10\%.$based on your analysis, which project is more profitable $($without using replacement chain approach$)?$because two projects have unequal lives, apply the replacement chain $($common life$)$ approach to compare these two projects. Which project is more profitable? $($NPV and IRR, MIRR, or both projects$)$

Corporate cost of capital: $10\%$

$$ Year: $0,1,2,3,4,5,6$

$$ Project A: $($$$40,000),$ $$8,000,$ $$14,000,$ $$13,000,$ $$12,000,$ $$11,000,$ $$10,000($Years $0-6,$ respectively$)$

$$ Project B: $($$$20,000),$ $$7,000,$ $$13,000,$ $$12,000($only lists Years $0-3)$