Compute How much will have when the CD matures

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Question 1. Suppose you currently have $2,000 and plan to purchase a 3-year certificate of deposit (CD) that pays 4%interest, compounded annually. How much will you have when the CD matures? How would your answer change if the interest rate were 5%, or 6%, or 20% respectively?

Question 2. Assume Project A has a present value of net cash inflows of $79,600 and an initial investment of $60,000. Project B has a present value of net cash inflows of $82,500 and an initial investment of $75,000. Assuming the projects are mutually exclusive, which project should management select? Justify your answer through work out.

Question 3. Earnings after Interest and Tax is Birr 20 crore, interest is Birr 4 crore, Income Tax isBirr 16 crore, Interest Coverage Ratio would be

Reference no: EM132601616

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