The questions are in the picture. Thank you!
a. c. d. a. b. C. 1 A $100,000 coupon bond has a 10% coupon rate. It matures In ten (10) years. If the required rate of return is 5%, value this bond 120,571.33 b. 138,608.67 160,329.27 204,321.22 2 Justin is Introsted in purchasing a new rental property. Annual expected cash flows from rent are expected to be $10,000 every year for the next ten yoars at which timo Justin plans to sell the property for $100,000. I Justin uses a discount rate of 5%, what is the value of this rental property. 120,571.33 138,608.67 OK. Compare this question to the previous bond question. This is the first 160,329.70 stop in Capital Budgeting. Get It Value the asset. d. 204,321.22 3 Justin is Introsted in purchasing a new rontal property. Annual expected cash flows from rent are expected to be $10,000 every year for the next ten years at which time Justin plans to sell the property for $100,000. 14 the current owner is asking for $100,000, and Justin uses a disount rate, what is the rental property's Net Present Value. Or, what is the value minus price! 20,571.33 38,608.67 OK. We'll need to understand and calculate three things: 1) Net Present Value 60,329.70 2) Payback period (easy) and 3) Internal Rate of Return (difficult) 104,321.22 You just did Net Present Valuo 4 Justin is introsted in purchasing a new rental property. Annual expected cash flows from rent are expected to be $20,000 every year for the next ten years at which time Justin plans to sell the property for $100,000. If the current owner is asking for $100,000, and Justin uses a disount rate of 5%, what is the rental property's Net Present Value. Or, what is the value minus price! a. 100,000.00 108,325.25 OK. You just did NPV again 150,325.22 d. 215,826.02 6 Justin is introsted in purchasing a new rental property. Annual expected cash flows from rent are expected to be $20,000 every year for the next ton years at which time Justin plans to sell the property for $100,000, If the current owner is asking for $100,000, how many years until Justin can recover his $100,000 investment a. 30 Years b. 20 Years OK. You just did NPV again c. 10 Years d. 5 Years a. b. c. d b. G