Use the spreadsheet titled “Decision Rules” in your exam tem…

Use the spreadsheet titled “Decision Rules” in your exam template to complete this problem. You are trying to decide which assisted living facility you should buy based upon cash flows as follows (in millions): Project CF  0 CF  1 CF   2 CF   3 CF   4 Death Valley -$30 $15 $2 $4 $45 ReTire Flats -$15 $2 $2 $0 $40 Pass Away Lots -$10 $7 $4 $5 $6 Your cost of capital is 17%. In the Excel Template, use the tab called “Decision Rules”.  Calculate the NPV, IRR, and Profitability Index for each project.  You have a budget constraint of $50million.  Which project(s) should you choose and (briefly) why?

 (8 points)  You purchased bonds from Proctle and Gamptor fi…

 (8 points)  You purchased bonds from Proctle and Gamptor five years ago when they were issued at par.  These bonds originally had 30 years until maturity, a semi-annual coupon payment, a coupon rate of 6%, and a par value of $1,000.  You want to sell the bonds today, and the market rate is now 7%. What is the price at which you could sell these bonds?

Fill in the blanks: According to the Solow Growth model, cou…

Fill in the blanks: According to the Solow Growth model, countries with smaller capital stocks per person should have              real GDP per person and grow               than otherwise similar countries with larger capital stocks per person.