thpoitumiry. yod fitte thy tromertizity? PROHt.EM SET I COWERING MODULES 1, 2, AND 3 ladewing returm. Woold you make the iavntmoer? aceeptrid? ascoptabies, harr wovid they be rialied? FROULFM SE1 I COVERING MODULE.4 1,2, AND 3 ite arpe in ywar ivistation following setum. Wcold yeu maie de inverimed? wyent? (2 poiais) e Sippose that the five puifect are indepondent. Foe those projite that are: PROBLEM SET I COVERTNG MODULES 1, 2, AND 3 Instrictions: Type your answen so each question. Hentwition assignment will not be accepted. Submit the conppleted assignment in ene Word or PDF file: ln order to receive full credit, show the stept in your calculation. Your name: (tf you work in a group, please list ati the members' names here) 1. (10 points each) Determine the fiature value besed ee arnal coepeandirg for each of the following: 2. (5 points) You are offered an investment that costs 5100,000 and pays you at the end of four years $168,000. Given the risk associated with this ieventment, yoe wint to carn a 15% nate of return. Would you malke the imestment? 3. (12 points) a. Complete the following table for the five projects: (2 points) b. Suppose that the five projects are mutually cuclusive. Which ooe would be accepted? (2 points) e. Suppose that the five projects are independent. For those projects that are aceeptable, how would they be ranked? (S points) 4, Stppose the following project which cost 51.5 million has the following estimated eash flows over the next five years and the required return for this project is 7%. 5. What are the primary characteristics of residential mortgage loans? Why does the ratio of adjustable-rate mortgages to fixed-rate mortgages in the economy vary over an interest rate cycle? When would the ratio be highest? 6. What are the two maior classes of consumer loans at U.S. banks? How do revolving loans differ from nonrevolving loans? thpoitumiry. yod fitte thy tromertizity? PROHt.EM SET I COWERING MODULES 1, 2, AND 3 ladewing returm. Woold you make the iavntmoer? aceeptrid? ascoptabies, harr wovid they be rialied? FROULFM SE1 I COVERING MODULE.4 1,2, AND 3 ite arpe in ywar ivistation following setum. Wcold yeu maie de inverimed? wyent? (2 poiais) e Sippose that the five puifect are indepondent. Foe those projite that are: PROBLEM SET I COVERTNG MODULES 1, 2, AND 3 Instrictions: Type your answen so each question. Hentwition assignment will not be accepted. Submit the conppleted assignment in ene Word or PDF file: ln order to receive full credit, show the stept in your calculation. Your name: (tf you work in a group, please list ati the members' names here) 1. (10 points each) Determine the fiature value besed ee arnal coepeandirg for each of the following: 2. (5 points) You are offered an investment that costs 5100,000 and pays you at the end of four years $168,000. Given the risk associated with this ieventment, yoe wint to carn a 15% nate of return. Would you malke the imestment? 3. (12 points) a. Complete the following table for the five projects: (2 points) b. Suppose that the five projects are mutually cuclusive. Which ooe would be accepted? (2 points) e. Suppose that the five projects are independent. For those projects that are aceeptable, how would they be ranked? (S points) 4, Stppose the following project which cost 51.5 million has the following estimated eash flows over the next five years and the required return for this project is 7%. 5. What are the primary characteristics of residential mortgage loans? Why does the ratio of adjustable-rate mortgages to fixed-rate mortgages in the economy vary over an interest rate cycle? When would the ratio be highest? 6. What are the two maior classes of consumer loans at U.S. banks? How do revolving loans differ from nonrevolving loans