Emma plans to purchase a $1000, 12 percent semi-annual bond, hold it for 3 years, receive six coupon payments, and redeem it at par value. What is maximum amount she should pay for the bond if she wants to cam at least 14 percent compounded semiannually on her investment? Fabco Inc is considering purchase flow valves that will reduce annual operating costs by $10,000 per year for the next, 12 years. Fabco's MARK is 7 percent/year. Using the present worth approach, determine the maximum amount Fabco should be willing to pay for the valves. Assume that a piece of property if purchased for $75,000. A 20% down payment is made and the rest is financed through a 30-year mortgage loan with a 12% annual interest rate, compound monthly. The loan will be repaid in equal monthly payments. Calculate the monthly payments. A $25,000 par value bond which carries a 16% bond dividend rate and pays dividends quarterly is being offered for sale. The bond will mature eight years after it is sold. What is the highest amount that an investor, who plans to earn a return of at least 12% on her investments, would be willing to pay for the bond? If the investor buys the bond for the price that will earn a return of exactly 12%, what effective interest rate will she receive on her investment? The Deadeye Distillery is opening a new production facility at Sweetwater Springs. Two types of stills are being considered and the following cost estimates have been developed: Using Net Present Worth Analysis, determine which alternative should be selected. Use a before-lax MARR of 25%