What is the minimum cash flow

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Reference no: EM131891594

1. What is the minimum cash flow that could be received at the end of year 3 to make the following project "acceptable"? Initial cost = $100,000; cash flows at end of years 1 and 2 = $45,000; opportunity cost of capital = 10%.

?2. Fitzgerald's 20?-year bonds pay 9 percent interest annually on a $1,000 par value. If the bonds sell at $945?, what is the? bond's yield to? maturity? What would be the yield to maturity if the bonds paid interest? semiannually? Explain the difference.

Reference no: EM131891594

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