Calculate the NPV of the following project using a discount rate of 12 %. Yr 0 = -$500; Yearr1 = -$50; Yr2 = $50; Yearr3 = $200; Yearr4 = $400; Yearr5 = $400 a.$118.75 b. $208.04 c. $ 61.22

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1.Calculate the NPV of the following project using a discount rate of 12 %. Yr 0 = -$500; Yearr1 = -$50; Yr2 = $50; Yearr3 = $200; Yearr4 = $400; Yearr5 = $400
a.$118.75
b. $208.04
c. $ 61.22
d.$ 618.75

2.You are buying your first house for $220,000, and are paying $30,000 as a down payment. You have arranged to finance the remaining $190,000 30-year mortgage with a 7% nominal interest rate and monthly payments. What are the equal monthly payments you must make?
a. $1,976
b. $1,110
c. $1,264
d. $1,513

3.How much would $1,599 due in 9 years be worth today if the discount rate were 10.5%?
a. $3,955.20
b. $3,770.35
c. $3,927.43
d. $4,000.00

4. Apple company sales last year were $48,000, and its total assets were $25,500. What was its total assets turnover ratio?
a. 1.10
b. 1.99
c. 1.21
d. 1.88

5. you purchase 100 shares at a price of $RM45 per share. One year later, the share are selling for $47 per share. In addition, a dividend of $4 per share is paid at the end of the period. Determine the total return from the investment.
a. $500
b$600.
c. $800
d. $400

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