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16) A proposed new venture will cost $175,000 and shoald produce annual cash flows of $48,500,585,000,540,000, and $40,000 for Yoars 1 to 4, reppectively. The

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16) A proposed new venture will cost $175,000 and shoald produce annual cash flows of $48,500,585,000,540,000, and $40,000 for Yoars 1 to 4, reppectively. The required payback period is 3 years and the discounted payback period is 3.5 years. The required rate of retum is 9 . pereent. Which methods indicate projoct acceptanse and which indicale aroied retection? A) Accept: payback, discounted paybacks Rcject NPV, IIRR, PI E) Aecepe: NPV, IRR; Rcject PL putback, discounted payback 17) The annual interest paid by a bond divided by the bands fice value is called the: A) coupon. B) face value C) maturity. D) yield to maturity. E) coupon rate. 18) A bond with a coupon rate of 6 percent that pays interet senrianinually and is priced at par will have a market price of A) 51,006;560 and interect payments in the amount of each. B) 51,060,530 C) 51,060,$500 D) $1,000;$30 E) 51,000;560 19) Suxette owns a corporate bond with a yield to maturity of 7.45 percent. She is in the 12 percent tax bracket. What is her equivalent rate of return on a mumicipal bond? lgnore state taxes, A) 6.17 percent B) 5.89 percent C) 6.56 pervent D) 8.26 percent ) 8.47 percent A comorate bond is currently quoted at 101.633. What is the market price of a bond with a o00 fice value? 81,000,28 1,002.77 , 016.33 102,77 76.70

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