The DISCOUNTED PAYBACK for the project shown above is: a) 2.27 b) 4.86 c) 3.66 d) 3.96 e) Does not pay back. What are the cases in which the IRR and NPV might not give the same answer? In other words when is the IRR unreliable? i) Mutually Exclusive Projects ii) When the NPV is equal to 0 iii) Non-Normal Cash Flows iv) When the project involves aliens a) i and ii only b) ii and iv only c) i and iii only d) i, ii, and iii e) all of the above. The White Pony Corporation has $1,000 face value bonds issued with a 70% coupon. They mature in 6 years call for semi-annual payments and currently have a yield to maturity of 5.5%. What will happen to the price bond if the market interest rate suddenly increases to 8%? a) The bond price will increase but still trade at a discount. b) The bond price will increase and trade at a premium c) The bond price will decrease but still trade at a premium d) The bond price will decrease and trade at a discount e) The bond price will remain unchanged Adventureland Corporation offers 7.25 percent coupon bonds with semiannual payments and a yield to maturity of 3.41 percent. The bonds mature in 18 years. What is the market price per bond if the face value is $1,000? a) $947.50 b) $1, 011.93 c) $1, 752.82 d) $1, 801.14 e) $1, 513.39