Percent compounded semiannually on her investment

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Emma plans to purchase a $1000, 12 percent semi-annual bond, hold it for 3 years, receive six coupon payments, and redeem it at par value. What is maximum amount she should pay for the bond if she wants to earn at least 14 percent compounded semiannually on her investment?

Fabco Inc. is considering purchase flow valves that will reduce annual operating costs by $10,000 per year for the next, 12 years. Fabco's MARR is 7 percent/year. Using the present, worth approach, determine the maximum amount Fabco should be willing to pay for the valves.

Reference no: EM131048298

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Percent compounded semiannually on her investment : Emma plans to purchase a $1000, 12 percent semi-annual bond, hold it for 3 years, receive six coupon payments, and redeem it at par value. What is maximum amount she should pay for the bond if she wants to earn at least 14 percent compounded semiannu..

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