Question
1Calculate thefollowing Time Value of Money problems a) If I am to receive $10,000 in 5years and given a 5% rate of return, what would
1Calculate thefollowing Time Value of Money problems
a) If I am to receive $10,000 in 5years and given a 5% rate of return, what would be present value of thisamount
b) If I put $7,000 in the bank at3% interest for 10 years , what is the future value of that amount
c) If I deposit $1,000 a year intoan account for 10 years at 2%, what is the future Value of that account
d) what is the present value of$1,000 a year deposited for 10 years at 4% interest.
2.Why would an investor agree nottake a dividend and agree to let a firm reinvest earnings back into a firm.
3.Please explain the different capitalbudgeting techniques, please discuss the pros and cons.
4.Please calculate the value of a 30yearbond with a 10% coupon , that isdue in 8 years, with currentinterest rates of 6%. Please explainwhy it would be a premium or discount bond.
5.Please explain what is a callablebond .Why would a firm call abond.
6.What are the major risks ofconducting business outside of your domestic environment.
Why would you consider conductingbusiness internationally
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