  ### Question 43540  Verified

Investments

An investment project will require development costs of $120 million at time zero and$80 million at the end of second year from time zero with incomes of $25million per year at the end of years 1, 2 and 3 and incomes of$60 million per year at the end of years 4through 10 with zero salvage value predicted at the end of year 10. Calculate the rate of return for this project.

### Question 43539  Verified

Investments

Considering discount rate of 8%, calculate NPV,Benefit Cost Ratio, and Present Value Ratio for the following investment and explain if it is a good investment.

C: Cost, I:Income, L: Salvage value

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Value Ratio for the

n if it is a good

### Question 43538  Verified

Investments

A bond has maturity date of 10 years. What is the rate of return on an investment, if you pay 750 dollars for a bond 2 years after it is issued (assume you buy the bond from the first owner after two years). And the bond pays you 60 dollars in the end of the year,for 8 years and 1000 dollars in the end of the eighth year.

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