Question
14. Assume you are presented with the opportunity to invest in the construction of a nuclear power plant. You will need to pay $50,000,000 for
14. Assume you are presented with the opportunity to invest in the construction of a nuclear power plant. You will need to pay $50,000,000 for the construction but it is anticipated that you will enjoy a savings of $5Million for each of the next 20 years. In the 20th year the plant will be de-commissioned at a cost of $7Million. What is the NPV of this project assuming a discount rate of 8%? A. $2,411,100 B. ($2,411,100) C. $1,412,511 D. ($1,812,300)
21. A three-year bond with a 10% coupon rate and a $1,000 face has a yield to maturity of 8%. Assuming annual coupon payments what would be the price of the bond? A. $857.96 B. $951.96 C. $1,000.00 D. $1,051.54
How do I calculate these with an Excel formula? or at all?
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