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QUESTION 10 4 points Save Answer Consider a project with the following cash flows: Year 0 1 2 3 4 Cash Flow -10.000 4.000 4,000
QUESTION 10 4 points Save Answer Consider a project with the following cash flows: Year 0 1 2 3 4 Cash Flow -10.000 4.000 4,000 2,000 6,000 If the opportunity cost of capital for the project is 15% per year, what is the NPV of the project? O $1.192.72 $1,248,39 $1,419.91 O $1.617.17 QUESTION 11 4 points Save Answer Security: A BBB BB Yield (%): 5.0 5.5 6.0 6.4 8.0 A mining company needs to raise $100 million in order to begin open pit mining of a coal seam. The company will fund this by issuing 30-year bonds with a face value of $1,000 and a coupon rate of 6%, with the coupons paid annually. The above table shows the yield to maturity for similar 30-year corporate bonds of different ratings. If the mining company's bonds receive an AA rating, what will be their selling price? O $774.84 O $947.22 O $1.153.72 O $1,072.67
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