What is the minimum number of bonds

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Reference no: EM132036652

1. Northern Warehouses wants to raise $10 million to expand its business. To accomplish this, it plans to sell 30-year, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 5 percent. What is the minimum number of bonds it must sell to raise the $10 million it needs?

87,996

43,998

37,129

40,842

45,963

2. You are trying to determine whether to accept project A or project B. These projects are mutually exclusive. As part of your analysis, you should compute the incremental IRR by determining:

the internal rate of return for the cash flows of each project.

the net present value of each project using the internal rate of return as the discount rate.

the internal rate of return for the differences in the cash flows of the two projects.

the discount rate that equates the discounted payback periods for each project.

the discount rate that makes the net present value of each project equal to 1.

Reference no: EM132036652

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