Question 65

Not yet answered Marked out of 1.00 Not flaggedFlag question Question text For a project with an initial investment of $38,000 and cash inflows of $10,500 a year for five years, calculate NPV given a required return of 10.5%/year.

Select one:

a. $1,699

b. $1,103

c. $1,171

d. $655

e. $1,300

question 66

What is the market value of a bond that will pay a total of 21 annual coupons of $90 each over the remainder of its life? Assume the bond has a $1,000 face value and an 8%/year yield to maturity.

Select one:

a. $1,135.90

b. $1,100.17

c. $1,196.36

d. $1,192.07

e. $634.86

question 67

The Johnson Company just paid an annual dividend of $1.85. How much would you be willing to pay for one share of Johnson Company stock if the dividend remains constant and you require a 9.5% rate of return? Select one:

a. $19.47

b. $18.95

c. $17.78

d. $16.84

e. $16.00

question 68

Suppose a project costs $375 and produces cash flows of $100 over each of the following six years. What is the IRR of the project?

Select one:

a. 10.0%

b. 15.3%

c. There is not enough information; a discount rate is required

d. 18.6%

e. 13.0%