9) You purchase a bond with an invoice price of $1,119. The bond has a coupon rate of 6.25 percent, a face value of S1,000, and there are four months to the next semiannual coupon date. What is the clean price of this bond? A) $1,052.17 B) $1,083.50 C) $1,087.75 D) $1,108.58 E) S1,114.14 9) Which one of the following methods of analysis provides the best information on the cost-benefit aspects of a project? A) Profitability inde:x B) Internal rate of return C) Average accounting return D) Net present value E) Payback Ausel's is considering a five-year project that will require $738,000 for new fixed assets that will be depreciated straight-line to a zero book value over five years. No bonus depreciation will be taken. At the end of the project, the fixed assets can be sold for 18 percent of their original cost. The project is expected to generate annual sales of $679,000 with costs of $321,000. The tax rate is 22 percent and the required rate of return is 15.2 percent. What is the amount of the aftertax salvage value? A) $132,840.00 B) $104,409.20 C) $103,615.20 D) $105,165.60 E) $118,406.90 Keyser Mining is considering a project that will require the purchase of $479,000 of equipment. The equipment will be depreciated straight-line to a zero book value over the five-year life of the project after which it will be worthless. The required return is 12 percent and the tax rate is 30 percent. What is the value of the depreciation tax shield in Year 4 of the project assuming no bonus depreciation is taken? A) $143,700 B) $138,400 C) $78,600 D) $28,740 E) $32,200