Mega Dynamics is considering a project that has the following cash flows: Year Project Cash Flow
YEAR PROJECTED CASH FLOW
0 ?
1 2000
2 3000
3 3000
4 1500
The project has a payback of 2.5 years. The firm's cost of capital is 12 percent. What is the project's net present value (NPV)?
A) $765.91
B) $1,049.80
C) $2,761.32
D) $577.68
E) $3,765.91

Asavings account that pays interest every 3 months is said to have a interest period

U. s. internet advertising revenue grew at the rate of r(t) = 0.82t + 1.14 (0 ≤ t ≤ 4) billion dollars/year between 2002 (t = 0) and 2006 (t = 4). the advertising revenue in 2002 was $5.9 billion.† (a) find an expression f(t) giving the advertising revenue in year t.

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.