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ABC is reviewing a project that will cost 1, project will produce cash flows 210 at the end of each year for the first two years and 772 at the end of each year for the next two years. What is the profitability index? Assume interest rate is 4%.

a.

b.

c.

d.

Question 2

Suppose an investment offers to double your money in 39 years. What annual rate of return are you being offered if interest is compounded semi-annually?

a. %

b. %

c. %

d. %

Question 3

How many years will it take to quadruple (i.e. 4 times) your money at 9% compounded quarterly?

a.

b.

c.

d.

Question 4

A bond is currently selling for 1,087. If the yield to maturity is 10%, the coupon rate will be:

a. less...