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The AW values of three independent projects are shown below. Projects A B B Annual Worth, $yr +3.000 -12,600 + 6,000 On the basis of
The AW values of three independent projects are shown below. Projects A B B Annual Worth, $yr +3.000 -12,600 + 6,000 On the basis of these results, the decision is to: Select project Conly Select projects A and Conly Select project B only Select projects B and C only A $50,000 loan amortized over 10 years at an interest rate of 9% per year requires payments of $7,791 to completely payoff the loan in year 10. If interest is charged on the unrecovered balance, what is the unrecovered loan balance at the end of year 3 provided the same $7,791 payments are made each year? -$39,212 -$26,627 -$43,122 -$34,950 **One of your friends purchased a zero coupon corporate bond (i.e., a bond that has no interest payments) for $4,850. The bond has a face value of $25,000 and is due in 16 years. If the bond is held to maturity, what rate of return will your friend make on the investment? 415.00% O 12.43% The rate of return cannot be calculated with the information given. 10.79%
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