What is net present value of project with cash flows

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Reference no: EM131906310

1. Seether Co. wants to issue new 10-year bonds for some much-needed expansion projects. The company currently has 8.8 percent coupon bonds on the market that sell for $847.19, make semiannual payments, and mature in 10 years. What coupon rate should the company set on its new bonds if it wants them to sell at par?

11.30%

11.10%

5.70%

11.40%

11.70%

2. What is the net present value of a project with the following cash flows if the required rate of return (cost of capital) is 12.0 percent?

a. -$1,208.19

b. -$842.12

c. $729.09

d. $1,311.16

e. -$1,574.41

Reference no: EM131906310

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