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A member of the Goldman Sachs board of directors might also serve on the board of directors of another financial corporation, such as Lehman Brothers. This pattern would illustrate the operation of

Jeff has a bag of peanut M and M’s with 6 green, 5 red, 4 brown, 6 blue, 4 yellow, and 6 orange. What is the probability he will reach into the bag and randomly select a red or green M and M? Express your answer as a simplified fraction.  Be sure to type  your answer in the box below for credit.

What is the price of a $1,000-bond that has a yield to maturity of 12.5 percent if it matures in 10 years and pays a 6.5 percent, semiannual coupon?

Power Manufacturing has equipment that it purchased 5 years ago for $2,650,000. The equipment was used for a project that was intended to last for 7 years. However, due to low demand, the project is being shut down. The equipment was depreciated using the straight-line method and can be sold for $420,000 today. The company’s tax rate is 35 percent. What is the aftertax salvage value of the equipment?

A project that costs $23,000 today will generate cash flows of $8,900 per year for seven years. What is the project’s payback period?

In a socialist economy,

The Twenty-Sixth Amendment to the U.S. Constitution extended the vote to

Alt’s is contemplating the purchase of a new $187,000 computer-based order entry system. The system will be depreciated straight-line to zero over the system’s five-year life. The system will be worthless at the end of five years. The company will save $65,450 before taxes per year in order processing costs and will reduce its net working capital by $14,000 immediately. The net working capital will return to its original level when the project ends. The tax rate is 21 percent. What is the internal rate of return for this project?

Blinding Light Co. has a project available with the following cash flows: Year Cash Flow 0 −$31,870 1 8,570 2 10,370 3 14,960 4 16,410 5 11,540 What is the project’s IRR?

Which type of government provides the most civil liberties?