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2. Following information relate to the cash flow of two project proposals. Project Year: 0 -30,000 +15,000 +12,000 +10,000 Y -20.000 +8,000 +7,000 +6,000 If
2. Following information relate to the cash flow of two project proposals. Project Year: 0 -30,000 +15,000 +12,000 +10,000 Y -20.000 +8,000 +7,000 +6,000 If the opportunity cost of capital of 6%, a. What is the payback period on each of these projects? b. Which project will be acceptable under the Net Present Value method? 3. A 10-year government bond has face value of OR 200 and a coupon rate of 6% paid semiannually. Assume that the interest rate is equal to 8% per year. What is the bond's price? What is the reason for the difference in price on an annual and semiannually basis? 4. What is the difference between simple interest and compound interest
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