What is the npv of the investment

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1. Future Semiconductors is evaluating a new etching tool. The equipment costs $931,000 and will generate after-tax cash inflows of $483,000 per year for six years. Assume the firm has a 18% cost of capital. What’s the NPV of the investment?

2. Yan Yan Corp. has a $5,000 par value bond outstanding with a coupon rate of 5.4 percent paid semiannually and 13 years to maturity. The yield to maturity of the bond is 5.9 percent. What is the dollar price of the bond?

Reference no: EM131901543

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