A bank account with an Annual Percentage Rate (APR) of 18% pays interest on a weekly basis. If an investor initially deposits 1,000, how much would this initial investment have grown to after two years? Assume that there are 52 weeks in a year.

a. 1392.40 b.1393.69 c. 1432.44 d. 1461.27

Assume a 10-year coupon-bearing bond with a 3% coupon rate and a face value of 100. Coupon payments are made at the end of each year. The effective annual interest rate is 5%. What is the value of the bond at its issuance (i.e., at time t=0)? a 108.53 b. 91.68 c. 91.47 d. 84.56

Which of the following statements on capital budgeting is FALSE?

		A reason for calculating EBIT in a capital budgeting analysis is to compute the tax outflow caused by the project.
		If a project is housed in a facility owned by the firm, then the opportunity cost of the facility can be ignored in the capital budgeting analysis.
		Most investment projects require a net working capital investment to ensure that they can be smoothly executed.
		Since depreciation is a non-cash expense, it needs to be added back to EBIT to compute cash flows.