Question 1:

Question 2:

Question 3:

Question 4:

Please answer all 4 questions, thank you, I will rate thumbs up upon correct answer

You are analyzing the after-tax cost of debt for a firm. You know that the firm's 12-year maturity, 13.00 percent semiannual coupon bonds are selling at a price of $1,206.98. These bonds are the only debt outstanding for the firm. (a1) Your answer is incorrect. What is the current YTM of the bonds? (Round final answer to 2 decimal places, e.g. 15.25%.) YTM % What is the average accounting rate of return (ARR) on a piece of equipment that will cost $1,224,000 and that will result in pretax cost savings of $388,000 for the first three years and then $286,000 for the following three years? Assume that the machinery will be depreciated to a salvage value of 0 over six years using the straight-line method and the company's tax rate is 32 percent. (Round final answer to 1 decimal place, e.g. 527.5.) Average accounting rate of return % If the acceptance decision is based on the project exceeding an ARR of 20 percent, should this machinery be purchased? The machinery A be purchased. West Street Automotive is considering adding state safety inspections to its service offerings. The equipment necessary to perform these inspections will cost $563,000 and will generate cash flows of $197,000 over each of the next five years. If the cost of capital is 12 percent, what is the MIRR on this project? (Round final answer to 1 decimal place, e.g. 527.5.) MIRR % You are analyzing two proposed capital investments with the following cash flows: Year O 1 Project X - $20,000 12,030 5,960 6,160 1,920 Project Y - $20,000 6,570 6,570 6,570 6,570 2 3 4 The cost of capital for both projects is 10 percent. Calculate the profitability index (PI) for each project. (Do not round discount factors. Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answer to 4 decimal places, e.g. 1.2527.) The Pl for project X is and the Pl for project Y is Which project, or projects, should be accepted if you have unlimited funds to invest? If you have unlimited funds you should invest in Which project should be accepted if they are mutually exclusive? If they are mutually exclusive you should invest in