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The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $200,000. The Sisyphean Company
The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $200,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 1 $92,326 Year 2 $92,326 Year 3 $92,326 Year 4 $92,326 The appropriate discount rate for this project is 15%. The internal rate of return (IRR) for this project is closest to: A. 35% B. 30% C. 18% D. 23% A $5,000 bond with a coupon rate of 5.6% paid semiannually has nine years to maturity and a yield to maturity of 6.9%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond? O A. rise by $259.25 B. fall by $259.25 C. rise by $362.95 D. fall by $31
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