Question 14 Ali and Mahsa want to purchase a new home. But to do so they will need to take out a loan from their bank. They will need to borrow USD 56,000. The bank offers them an interest rate of 7.8% APR compounded monthly. The term of the loan is 15 years and calls for equal monthly payments. What is the monthly payment of principal and interest Ali and Mahsa must pay? a) USD 431 b) USD 483 c) USD $29 d) USD 603 Answer: Question 15 The director of finance for Vodafone Ltd is considering a project with the following expected net cash-flows: Year Expected Net Cash Flows (000) 0 S500 1 256 I 2 378 3 683 This project has a cost of capital of 12.00% APR compounded annually. What is the project NPV? (000) a) S132 b) S145 c) S157 d) S166