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Could you tell me the answer from Q1 to Q5 with explanation? Q1: C Q2: A Q3: A Q4: B Q5: B Question 1 (10

Could you tell me the answer from Q1 to Q5 with explanation?

Q1: C

Q2: A

Q3: A

Q4: B

Q5: B

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Question 1 (10 points) Uber currently has a bank loan outstanding that requires it to make three annual payments at the end of the next three years of $1,000,000 each. The bank has of- fered to allow Uber to skip making the next two payments if instead it makes one large payment at the end of the loan's term in three years. If the interest rate on the loan is 6%, then the nal payment (in other words, the value at the end of year 3) that the bank will require, to make Uber indifferent be- tween the two forms of payments, is closest to: A) $2,673,000 B) $3,000,000 C) $3,184,000 D) $3,375,000 Answer: Question 2 (10 points) You bought a bond with a face value of $1,000, a coupon rate of 10% and with a maturity of 1 year. The coupons are paid yearly. What market price do you pay for the bond if the market discount interest rate is 5% APR? A) $1,047.62 B) $1,100.00 C) $1000.00 D) $952.38 Answer: Question 3 (10 points) Two years ago you purchased a used car. You nanced your car for 28 months (with payments made at the end of the month) with a loan at 5.9% APR. Your monthly payments are $617.16 and you have just made your 24th monthly pay- ment on your car. Assuming that you have made all of the rst 24 payments on time, then the out- standing principal balance on your used car loan is closest to: A) $2,438. B) $20,300. C) $8,714. D) $1,925. Answer: Question 4 (10 points) Standard Oil has a net prot margin of 4.0%, a total asset turnover of 2.2, total as- sets of $525 million, and a book value of equity of $220 million. Standard Oil's current return-on-equity (ROE) is closest to: A) 8.8% B) 21.0% C) 23.8% D) The answer cannot be determined with the information given. Answer: Question 5 (10 points) Use the following timeline to answer the question below. 0 1 2 3 $0 $600 $1,200 $1,800 At an annual interest rate of 7%, the value of this timeline in m is closest to: A) $3,080 B) $3,525 C) $3,770 D) $4,035

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