Microsoft currently has an annual coupon bond outstanding. A decrease in the market rate of interest...

Question

Question

Microsoft currently has an annual coupon bond outstanding. A decrease in the market rate of interest will of the bond. Multip

Which of the following statements related to payback and discounted payback is/are correct? I. Payback is a better method of

Project A and Project B will require using the same floor space at the main street store of Macys. If the store accepts Proj

The higher the degree of financial leverage employed by a firm, the I. lower the amount of debt incurred. II. lower the balan

Susan has deposited $500 today in a savings account at the Chase Bank. This account will pay her back $555 in total in two ye

Answer 1

Answer #1

I have answered third and fifth questions

3) Mutually exclusive

Mutually exclusive projects means if you take up one project for investment then you cannot take up other projects

5) Future value

as you invest 500 today , the investment will pay you back 555 in 2 years, which means

the future value of 500 after 2 years = 555

calculated as = 500(1+R)²

Answer 2

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