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Celesta Frank wants to go on a cruise in three years. She could earn 8.2 percent compounded monthly in an account if she deposits the money today. She needs to have $10,000 in three years. How much will she have to deposit today? (Round to the nearest dollar.)

David Snider Inc. is considering when to harvest its moldy bread supply for antibiotics. It has calculated that the current NPV dollars for harvesting the bread are increasing according to the following schedule. When should the firm harvest the bread? The cost of capital for the firm is 14 percent. NPV increase if harvested next year over that of harvesting now     25%     NPV increase if harvested year 2 over that of harvesting year 1     20% NPV increase if harvested year 3 over that of harvesting year 2     17% NPV increase if harvested year 4 over that of harvesting year 3     13% NPV increase if harvested year 5 over that of harvesting year 4     10%

John would like to invest in oil futures and is aware that the returns on such an investment can be volatile.  Use the following table of states, probabilities, and returns to:                                Probability          ReturnBoom                    0.30                        40.00%Good                     0.20                        30.00%OK                          0.50                        15.00% The confidence interval that captures 90% of possible returns – 

The internal rate of return is

If a bond’s coupon rate is equal to the market rate of interest, then the bond will sell:

Whenever a project has a negative impact on an existing project’s cash flows, then that effect should:

Howard, Inc., is a fast-growing technology company that paid a $1.25 dividend last week. The company’s expected dividend growth rates over the next four years are as follows: 25 percent, 30 percent 35 percent, and 30 percent. The company then expects to settle down to a constant-growth rate of 8 percent annually. If the required rate of return is 12 percent, what is the present value of the dividends over the fast growth phase? (Do not round intermediate calculations. Round final answer to two decimal places.)

Which one of the following statements is true of a bond’s yield to maturity?

Chuck Norris wants to buy five-year zero coupon bonds with a face value of $1,000. The yield to maturity is 8.5 percent. Assuming annual compounding, what would be the current market price of these bonds? (Round your answer to the nearest dollar.)

The net present value