What is the net present value given a required rate

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Q. What is the current price of an existing Treasury bond that pays a fixed coupon of 6.4% per annum per $100 face value, compounding half-yearly, and maturing in four years? Current market yields are 6.8% per annum.

Q. Let us suppose that an investment today for $313320 cash is to generate the following cash flow returns: $50397 at the end of year 1, $84003 at the end of 2 years time and another $129631 at the end of 3 years. What is the net present value given a required rate of return of j4=6.25%?

Q. A company considers investing $388028 on acquiring new equipment which is expected to have a life span of 3 years with no residual value at the end. The company forecasts an increase in annual sales of $368544 and annual costs of $140676 every year for the 3 years. Given a required rate of return of 15.5%, what is the resulting NPV of this investment?

Reference no: EM132596572

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