Jones Corp is evaluating a project that has the following annual free cash flows: Period 0 1 2 Free Cash Flow 150 100 150If the project's discount rate is 12%, then what is the NPV of the project?

2.At the beginning of the year, John invested $10,000 in some debentures. He will receive a 10% coupon payment each year, paid yearly, and the principal will be repaid at the end of 5 years.

Using a discount rate of 8%, what is the approximate net present value (NPV) of John's investment?

3.Yesterday the Rockville corporation instituted a 2-for-1 split. Before the split, the market share price was $63.44 per share and the corporation had 2.3 billion shares outstanding. ?

What was the pre-split market cap for Rockville?

what was the post-split number of shares outstanding for Rockville?

What was the post-split market price per share for rockville?

4.Jack plans to take a 30-year fixed rate, 0 point mortgage at 4.625% to finance 80% of his new house with a monthly payment of $1,200.For simplicity, assume that there are no other fees or costs. Jack would like to take a 20-year second mortgage loan (Home Equity Line of Credit (HELOC)), with an annual rate of 5.615%.If Jack can only make $200 monthly payments for the HELOC, how much does he still need right now for the down payment?

5.You are thinking about selling your fishing excursion company. You can sell it today for $176,000. Or, you can sign a ten year contract with the first mate, Kate, where she operates the business, will own it after the contract, and you get all the profits, net of Kate's salary. Kate will only sign the contract if her salary is $65,000 or above per year. You estimate that the revenues for the company will be $85,000 per year, before paying Kate's salary.If the discount rate is 8%, should you sign the contract?

6.John needs money in 15 years' time to pay for his son's university fees. He is considering

three investments options:

(i) A single amount of $13250.with interest compounded continuously

(ii) 150 at the end of each month.

(iii) N$ 1750 at the beginning of each year.

a) If the interest rate is 10.5% p.a., how much will he get for each option?

b) What is the interest component for each investment?

7.How much will you have saved after 6 years by contributing $1,200 at the end of each year if you expect to earn 11% on the investment?

8.A business owner plans to deposit his annual profits in an investment account earning a 9% annual return. If the owner starts with their first deposit today for $22,000 and expects to make the same profit for the next 7 years, how much will be saved for retirement at that point?

9.What is the present value (PV) of a 12-year lease arrangement with an interest rate of 7.5 percent that requires annual payments of $4,250 per year with the first payment being due now?

10.Jay Jenkins takes out a 10.5% simple interest loan today that will be repaid 6 months from now with a payoff amount of $4000. What amount is Jay borrowing?