14. (TCO 4) You are considering two investments. Investment I is in a software company, and Investment II is an engineering company. The investments offer the following cash flows:

Year	Software Company	Engineering Company
1	$5,000	$15,000
2	$3,000	$8,000
3	$4,000	$9,000
4	$3,600	$11,000

If the appropriate discount rate is 10 percent, what is the approximate present value of the Engineering Company investment? (Points : 3)

$33,200
$34,500
$42,000
$43,500

13. (TCO 3) Fine Oak Woodworks is considering a project that has cash flows of $6,000, $4,000, and $3,000 for the next three years. If the appropriate discount rate of this project is 10 percent, which of the following statements is true? (Points : 3)

The current value of the project%u2019s inflows is $13,000
The approximate current value of the project%u2019s inflows is $11,000
The current value of the project%u2019s inflows cannot be determined
The project should be rejected because its present value is negative

3. (TCO 3) Fanta Cola has $1,000 par value bonds outstanding at 12 percent interest. The bonds mature in 25 years. What is the current price of the bond if the YTM is 13 percent? Assume annual payments. (Points : 3)

$1078
$1085
$927
$1000

5. (TCO 3) Bonds issued by Blue Sky Airlines have a face value of $1,000 and currently sell for $850. The annual coupon payments are $80. If the bonds have 10 years until maturity, what is the approximate YTM of the bonds? 10.50%
11.50%
11.75%
12%