You are offered an investment opportunity that costs you $28,000, has a net present value (NPV) of $2278, lasts for three years, has interest rate of 10%, and produces the following cash flows: Date 0 2 $15,000 -$28,000 $10,000 ? Cash flow The missing cash flow from year 2 is closest to A. $13,000 B. $12,000 C. $12,500 D. $10,000 A $5,000 bond with a coupon rate of 5.3% paid semiannually has ten years to maturity and a yield to maturity of 6.5%. If interest rates fall and the yield to maturity decreases by 0.8%, what will happen to the price of the bond? A. rise by $399.45 B. fall by $285.32 C. rise by $285.32 D. fall by $342.39 Project A Project B Project C Project D Initial Investment $14 million $12 million $10 million $8 million Cash flow $8 million per year for three years $6 million per year for three years $4 million per year for six years $3.0 million per year for eight years An investor has a budget of $20 million. He can invest in the projects shown above. If the cost of capital is 5%, what investment or investments should he make? A. Project A B. Project B C. Project B and Project D D. Project C and Project D