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A $ 1 0 0 0 bond bearing interest at 8 % payable semi - annually redeemable at par on February 1 , 2 0
A $ bond bearing interest at payable semiannually redeemable at par on February was purchased on
October to yield compounded semiannually. Determine the purchase price.
The purchase price is $
Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.
Replacing old equipment at an immediate cost of $ and an additional outlay of $ five years from nill
result in savings of $ per year for years. The required rate of return is compounded annually. Compute the net
present value and determine if the investment should be accepted or rejected according to the net present value criterion.
The net present value of the project is $
Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.
The proposal should be
accepted.
rejected.
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