Finacial

Appendix 2 Answers to selected end-of-chapter questions and problems Chapter 1 7. a. |Proposal |% retrovert | |1 |20 | |2 | 5 | |3 | 7.5 | |4 | 9 | |5 | 12.5 | |6 | 7.5 | Thus, the firm pass on yet invest in Proposals 1 and 5. b. hitch 1: $60 000; finish 2: $46 ergocalciferol c. stage 1: $6; period of time 2: $4.65 d. effect 1 : $12 000 Period 2 : $9300 e. Period 1: $15 909.09; Period 2: $5000 f. The P1 dividend ($12 000) is more than desired, so the excess $2000 (12 000 10 000) will be invested in the market, with the progeny (2000 × 1.10 = 2200) being consumed in P2. Therefore, upper limit consumption in Period 2: $11 500 9.a.There is a $lm spend constraint. It is non good enough to say the individual labor movements in parade of return and consequently accept them in order. You plunge out to look at all the possible conclaves of projects whose have disbursal is less than or equal to $lm, and select the combination with the highest NPV.

However, a quick reckoning of NPVs may reveal a project not unconstipated worth considering: | |Outlay | enter value of Expected bullion |NPV | |Project | |Flows | | |1 |$500 000 |$610 000 |$ cx 000 | |2 | one hundred fifty 000 | 142 500 | (7500) | |3 | 350 000 | 420 000 | 70 000 | |4 | 450 000 | 531 000 |...If you want to go a full essay, order it on our website: Orderessay

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