A project needs an initial outlay of $3000 for equipment and will net a cash flow of $250 for the next 15 years. At the end of the 15th year, there is a Salvage Value of $1000 for the equipment. What is the NPV of the project if the cost of capital is 15% p.a. effective (to the nearest dollar)? Select one: a. $2250 b. $1585 c. $1415 d. -$945 Which of the following statements is true of the price shares when they first trade on the ASX? Select one: a. Price may rise due to the size of underwriting fees and other expenses. b. Price may rise due to uncertainty surrounding the company's future earnings. c. Price may rise if the IPO was over-subscribed d. Price may rise because speculators are selling their shares Murringo Horticultural Co, Ltd is planning to list on the ASX by issuing 100 million ordinary shares, at a price of $2.00 per share. The company's profits have grown rapidly over the last three years. Which of the following is NOT a cost component that will make up the total cost for Murringo Horticultural to issue these new shares and list on the ASX? Select one: a. The underwriting spread. b. Out-of-pocket expenses, including legal and accounting fees, as well as fees for taxation advice. c. Underpricing, which is the difference between the offering and closing price on the first day of the IPO times the number d. The cost of printing the annual report. shares Gi Gi has an opportunity to invest $24,000 today at a nominal interest rate of 7.8% per annum, compounding weekly. If she wants this to grow to $30,000, how long does she need hold her investment? Select one: a. 142.5 weeks b. 149.6 weeks c. 150.7 weeks d. 148.9 weeks Boorowa Pastoral Ltd plans to raise $2.2 million to purchase land the graze more merino sheep. It will issue bonds with a term to maturity of 10 years. The face value per bond will be $1,000 and the coupon rate will be 7.5% per annum, pald semi-annually. Similar corporate bonds are trading at a yield to maturity of 9% per annum, compounded semi-annually. It is expected that these new bonds will trade at this rate. If the total cost of the bond issue is 3.5%, how many bonds will Boorowa Pastoral need to issue? Select one: a. 2,527 b. 2,437 c. 2,438 d. 2,526