Using the calculator amortization function

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1. Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 9 percent and the maximum allowable payback is 4 years. Time: 0 1 2 3 4 5 Cash flow: -1,900 250 600 850 700 525

2. BioScience Inc. will pay a common stock dividend of $2.90 at the end of the year (D1). The required return on common stock (Ke) is 15 percent. The firm has a constant growth rate (g) of 6 percent. Compute the current price of the stock (P0). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

3. John receives a 10,000 loan, with an interest rate of 6 %, for 6 years.

Using the Calculator's amortization function, what is the loan's monthly payment amount?

Reference no: EM132053579

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