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Find interest coverage ratio would be

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Question 1. If you have Birr1000 and you plan to save it for 4 years with an interest rate of 10%, what is the future value of your savings?

Question 2. Earnings after Interest and Tax is Birr 20 crore, interest is Birr 4 crore, Income Tax is Birr 16 crore, Interest Coverage Ratio would be:

Question 3. Suppose you currently have $2,000 and plan to purchase a 3-year certificate of deposit (CD) that pays 4%interest, compounded annually. How much will you have when the CD matures? How would your answer change if the interest rate were 5%, or 6%, or 20% respectively?

Question 4. Assume Project A has a present value of net cash inflows of $79,600 and an initial investment of $60,000. Project B has a present value of net cash inflows of $82,500 and an initial investment of $75,000. Assuming the projects are mutually exclusive, which project should management select? Justify your answer through work out.

Reference no: EM132601642

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