ey. The house you want to buy costs $767,800. You plan to make a cash down payment of 20 percent and finance the balance over 30 years at 4.75 percent. What will be the amount of your monthly mortgage payment?

$3,269.80

$3,153.63

$2,177.78

$3,204.17

$3,314.14

ee. You are considering two independent projects with cashflow information below. Both have been assigned a discount rate of 8%. Based on the profitability index, what is your recommendation concerning these projects?

Year Project A Project B

0 -$39,500 -$42,000

1 20,000 10,000

2 24,000 35,000

You should accept both projects since both of their PIs are positive

You should accept both projects since both of their PIs are greater than 1

You should only accept project B since it has the largest PI and the PI exceeds 1

Neither project is acceptable

You should accept project A since it has the higher PI

es. You would like to invest in the following project. Find NPV with 6% required return.

Year Project A

0 -$58,000

1 30,000

2 37,000

$3,269.80

$3,153.63

$3,314.14

$3,231.76

$2,177.78