project, the Federal Reserve took actions that changed interest rates rie project whose cash flows are shown below. However, before the decision and therefore the firm's e hed's action did not affect the forecasted cash flows. By how much did the change project's forecasted NPV? in the WACC affect the Old WACC: 10% Year Cash flows New WACC: 11.25% 0 -$1,000 $410 $410 $410 A.-$17.19 t B. -$19.88 -2.42 C. -$20.93 D' -$22.03 E. -$23.13 15. XYZ, Inc. is considering updating one of its existing machines. They will pick one from the following two machines. The first one costs $150,000 to install, $20,000 to operate per year for 10 years. It will be sold for $50,000 ten years after the installation (t-10). The second one costs $240,000 to install, $12,000 to operate per year for 16 years. It will be sold for SS4,000 sixteen years after the installation (t 16). The firm's cost of capital is 8%, what is the tquivalent annual annuities of the best machine? -11166-4u A. $39,158.61 B. $38,902.95 C. $37,465.61 D. $37,333.70 E. $35,068.25 4 16. You have contracted to buy a house for $521,250, paying $104,250 as a down payment and taking a fully amortizing mortgage for the balance at a 4.37% annual interest rate for 30 years. What will your monthly payment orie nrincipal and interest) be if you make monthly installments over the next 30 years (round to the nearest rt 2 (Common Assessment Questions) project, the Federal Reserve took actions that changed interest rates rie project whose cash flows are shown below. However, before the decision and therefore the firm's e hed's action did not affect the forecasted cash flows. By how much did the change project's forecasted NPV? in the WACC affect the Old WACC: 10% Year Cash flows New WACC: 11.25% 0 -$1,000 $410 $410 $410 A.-$17.19 t B. -$19.88 -2.42 C. -$20.93 D' -$22.03 E. -$23.13 15. XYZ, Inc. is considering updating one of its existing machines. They will pick one from the following two machines. The first one costs $150,000 to install, $20,000 to operate per year for 10 years. It will be sold for $50,000 ten years after the installation (t-10). The second one costs $240,000 to install, $12,000 to operate per year for 16 years. It will be sold for SS4,000 sixteen years after the installation (t 16). The firm's cost of capital is 8%, what is the tquivalent annual annuities of the best machine? -11166-4u A. $39,158.61 B. $38,902.95 C. $37,465.61 D. $37,333.70 E. $35,068.25 4 16. You have contracted to buy a house for $521,250, paying $104,250 as a down payment and taking a fully amortizing mortgage for the balance at a 4.37% annual interest rate for 30 years. What will your monthly payment orie nrincipal and interest) be if you make monthly installments over the next 30 years (round to the nearest rt 2 (Common Assessment Questions)
