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help with Question 1, 2,3 Problems: (show all work) 1. The initial outlay and net cash flows are projected for a project. Your required rate
help with Question 1, 2,3
Problems: (show all work) 1. The initial outlay and net cash flows are projected for a project. Your required rate of return is 12% Project A Initial Outlay: - $150,000 Cash Flow Year 1 $20,000 Year 2 $30,000 Year 3 $40,000 Year 4 $50,000 Year 5 $60,000 a Calculate the payback period for project (approximate is OK) b. Calculate the NPV c. Calculate the IRR d. Should the investment be made? Why or Why not? 2. Jim has a convertible bond valued at $900 with a conversation ratio of 30 each. The price of the stock is @ $ 40. a. What is the conversion value of her bond? b. Should she convert? 3. What is the value of a preferred stock with dividends of $10 per share and a required rate return of 126? United StatesStep by Step Solution
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