Terrison Inc. is considering the purchase of a new material handling system for a cost of $27 million. This system is expected to generate a positive cash flow of $3 million per year in perpetuity. What is the IRR of the proposed investment if the appropriate hurdle rate is 10%
A. 7.8%
B. 10.5%
C. 11.1%
查看答案
There are eight sprinters in the finals of a race. How many different ways can the gold, silver, and bronze medals be awarded
A. 8
B. 56
C. 336
Rent is $700 monthly and is due on the first day of every month. If the stated annual interest is 6 percent, the present value of a full year"s rent payment is closest to:
A. $8174
B. $8352
C. $8833
A company is considering entering into a joint venture that will require an investment of $30 million. The project is expected to generate cash flows of $7 million, $14 million, and $15 million in each of the next three years, respectively. Assuming a discount rate of 7%, what is the project"s NPV
A. -$5343200
B. -$3702900
C. +$1563400
The yield to maturity on otherwise identical option-free bonds issued by the U.S. Treasury and a large industrial corporation is 6 percent and 8 percent, respectively. If annual inflation is expected to remain steady at 2.5 percent over the life of the bond, the most likely explanation for the difference in yields is a premium due to:
A. maturity.
B. inflation.
C. default risk.