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1. A mining company plans to mine a beach for rutile. To do so will cost $10 million up front and then produce cash flows of $3 million per year for five years. At the end of the sixth year the company will incur shut-down and clean-up costs of $2 million. If the cost of capital is 11%, then what is the MIRR for this project using the discounting method?
A) 12.5%
B) 11.07%
C) 10.92%
D) 8.52%
2. You own a 6% bond. 1000$ par value, maturing in 10 years with semi-annual coupons and a market value of 1090$. What is the capital gains yield?
A. 4.853%
B.5.504%
C.0.653%
D.-3.077%
E.-0.0651%
An investment has an initial cost of $2.7 million and net income of $189,400, $178,600, and $172,500 for Years 1 to 3. This investment will be depreciated by $900,000 a year over the three-year life of the project. Should this project be accepted bas..
An international firm which imports raw materials can reduce its _____ exposure to _____ rate risk by entering into a forward contract. Recognition of the cost of using physical capital equipment over its useful life is referred to as:
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Earnings per share will increase when: A recent offering of Talmot Corporation stock was underwritten by Advantage Securities. The terms were: Price to public $10 per share, number of shares 10 million, and proceeds to Talmot $45,000,000. What profit..
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