Investment appraisal is considered as method for project

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1. River Front Company's bonds mature in 20 years, have a par value of $1,000, and annual coupon interest rate is 8%. The market requires an interest rate of 6% on these bonds. What is the bond's price? Show work. a. $1,033.14 b. $1,2295.40 c. $948.76 d. $1,096.95

2. The NPV criterion to investment appraisal is considered as the best method for project evaluation and is widely used in practice. First, describe the pitfalls of NPV. Second, discuss how active managerial decision-making during project implementation will affect the outcomes of NPV analysis. briefly discuss in 4-5 sentences.

Reference no: EM131944934

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