Questions 1, 4, 5 and 6

1. In Homework No. 1, you calculated that, for Macy' s in 2016, the Net Profit Margin was 2.37% and the Return on Equity (ROE) was 13.9% (using the du Pont identity approach) . What would Macy's ROE have been if the Net Profit Margin was 4%? 2. P135, NO.14 3. P136, No.22 4. Machine value A machine costs $1,000,000 and will generate a net cash flovw (i.e., cash inflows less cash outflows) of $200,000 per year for ten years. The opportunity cost of capital is 12% a. What is the net present value of the machine? b. What will the machine be worth at the end of six years? 5. Loan Calculations Suppose you borrow $25,000 today and agree to repay this loan in five equal annual installments the rate of interest is 68. a. What is the required annual payment? b. Calculate an amortization table for this loan (NOTE: For all calculations, round off to the nearest dollar.) 6. Bond Price maturity of 10 years, a coupon rate of 8% (with annual coupon What is the price of a bond with a face value of $1,000, a payments), and a yield of 10%