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The attached questions are required to be solved in excel. Please note that there are 2 solutions for the attached questions in coursehero with different

The attached questions are required to be solved in excel. Please note that there are 2 solutions for the attached questions in coursehero with different answer . I need to know the correct answers

image text in transcribed Save and Submit 2 points PLEASE SHOW THE WORK QUESTION 2 1. A General Co. bond has an 8 percent coupon and pays interest annually. The face value is $1,000 and the current market price is $1,020.50. The bond matures in 20 years. What is the yield to maturity? A 7.75 . percent B 7.82 . percent C 8.00 . percent D 8.04 . percent E. 8.12 percent 2 points 1. QUESTION 18 You are considering two mutually exclusive projects with the following cash flows. Will your choice between the two projects differ if the required rate of return is 8 percent rather than 11 percent? If so, what should you do? Year 0 1 2 3 A . B . C . Project A -$240,000 $ 0 $ 0 $325,000 Project B -$198,000 $110,800 $ 82,500 $ 45,000 yes; Select A at 8 percent and B at 11 percent. yes; Select B at 8 percent and A at 11 percent. yes; Select A at 8 percent and select neither at 11 percent. D no; Regardless of the required rate, project A always has . the higher NPV. E. no; Regardless of the required rate, project B always has the higher NPV. 2 points QUESTION 22 As the director of capital budgeting for Denver Corporation, you are evaluating two mutually exclusive projects with the following net cash flows: 1. Year 0 1 2 3 4 Project X Project Z Cash Flow Cash Flow -$100,000 -$100,000 50,000 10,000 40,000 30,000 30,000 40,000 10,000 60,000 If Denver's cost of capital is 15 percent, which project would you choose? A Neither project. . B Project X, since it has the . higher IRR. C Project Z, since it has the . higher NPV. D Project X, since it has the . higher NPV. E. Project Z, since it has the higher IRR. 2 points QUESTION 24 1. Use this information for the next 3 questions: Lugar Industries is considering an investment in a new machine with the following information: Machine cost 225,000 Setup cost 25,000 Salvage value 50,000 Life 5 years Net operating expense savings: End End End End End of of of of of Year Year Year Year Year 1 2 3 4 5 $ 50,000 $ 90,000 $110,000 $120,000 $120,000 WACC 10% Tax rate 40% Assumed value of the machine at end of 5 years is $50,000 If Lugar buys the machine, calculate the following answers. Remember to include the impact of depreciation, taxes, and salvage value. Calculate the NPV. You need to take into account depreciation, taxes and salvage value into account when calculating this problem. Round you answer to the nearest whole number. Do not use $, commas, or decimal points) ) 1. QUESTION 25 Based on the above information, calculate the IRR. Round you answer to the nearest two decimal places. Do not use %) (For example, 34.4550% would be entered as 34.46. 7 points 1. QUESTION 26 Based on your calculations, should Lugar buy the machine? Yes No 2 points 1. QUESTION 27 Lucinda Diamanti is 10 years old today (August 15th) and while all she's interested in is her new bike, her parents Mr. & Mrs. Diamanti are considering how they will pay for her college education beginning in 8 years. They decide to set up a meeting with their financial adviser Cindy Morgan to discuss an education savings plan. During the meeting, the Diamanti's inform Cindy that they have $8,000 they can use to begin the savings plan, and from what they can determine, Lucinda will require 4 years to complete her undergraduate degree in molecular biology. Cindy consults a reputable college reference to see that tuition costs are currently estimated at $32,000 per year and are expected to grow at 4% each year for the foreseeable future. The Diamanti's are concerned that they won't have enough money and ask Cindy how to make sure they have enough to completely pay for Lucinda's undergraduate education. The Diamanti's inform Cindy that they want to make deposits into the education savings plan on an annual basis until Lucinda's first year in college at which point they will stop making contributions. Cindy tells them they can earn 8% annual interest on their savings plan. Your job to answer the following two questions (You may assume there are 8 years between today and the beginning of Lucinda's first day in college): Assuming the estimates on tuition costs are correct, how much money needs to be in the account when Lucinda begins college in 8 years to fund 4 years of college? Round your answer to a whole number. (No $ signs, commas, or decimal points) 7 points QUESTION 28 1. How much money do the Diamanti's need to deposit annually in order to reach their goal to fund Lucinda's education fully? Remember that the Diamanti's have $8,000 to invest today. Round your answer to a whole number. (No $ signs, commas, or decimal points) 7 points QUESTION 29 1. Please use the following facts to analyze this nest two questions: Assume you just received a bill for services you and have the following two payment options: Option 1: Pay the entire bill of $600 now Or Option 2: Pay: $130 now And $130 for each of the next 4 months What annual interest rate (APR) are you paying if you choose Option 2? Assume monthly compounding. Round you answer to the nearest two decimal points. Do not use $, commas or %. For example, 25.34% would be entered as 25.34. 6 points QUESTION 30 1. What Effective Annual Rate are you paying if you choose Option 2? Assume monthly compounding. Round you answer to the nearest two decimal points. Do not use $, commas or %. For example, 25.34% would be entered as 25.34. 6 points QUESTION 31 1. Please use the following facts to analyze the next two questions: Facts and Assumptions: Lease Term in Months Lease Down Payment Monthly Lease Payments Sales Tax Rate Lease Buyout at End Title Fee Car Loan Market Rate 24 500.00 300.00 8% $ 15,000.00 $ 25.00 7% $ $ Outright Purchase Price Before Tax and Title $ 19,500.00 2. 3. What is the NPV of the lease? Round you answer to the nearest whole number. Do not use $, commas, or decimal points and enter as a positive number. For example, -$34,567.50 would be entered as 34568. 4. 6 points QUESTION 32 1. What would it cost you to buy the car today if you were paying cash? Round you answer to the nearest whole number. Do not use $, commas, or decimal points and enter as a positive number. For example, $34,567.50 would be entered as 34568. 6 points Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save and Submit

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