Digicorp has a 7%, semi-annual coupon bond with a current market price of $1,010.40. The bond has a par value of $1,000 and a yield to maturity of 6.87%. How many years is it until this bond matures?

Select one:

a. 23.62 years

b. 22.07 years

c. 11.81 years

d. 15.98 years

e. 10.67 years

You purchase a machine for $22,000 which belongs in a 30% CCA class. What is the present value of the CCA tax shield on the machine if it is sold at the end of the third year for $6,000, your tax rate is 34%, and the appropriate discount rate is 15%?

Select one:

a. $3,510

b. $3,767

c. $5,623

d. $1,014

e. $6,994

A 25- year project has a cost of $1,500,000 and has annual cash flows of $400,000 in years 1-15, and $200,000 in years 16-25. The company's required rate is 14%. Given this information, calculate the NPV of the project.

Select one:

a. $1.10 million

b. $1.00 million

c. $0.50 million

d. $0.87 million

e. $0.70 million

please answer all THREE questions. thank you