Friday
March 27, 2015

Homework Help: investing

Posted by Mitch on Saturday, February 2, 2013 at 12:53am.

A company is thinking of investing some surplus cash in 30 year $1000 face value Microsoft 6% annual coupon bonds. It plans to pay $925 each for 10,000 of them, now, and expects to SELL them for $1025 each at the end of 5 years.
Make a determination about the economic viability of the proposal using 3 capital budgeting methods

So how would we break this information down to figure out the simple payback, NPV and IRR using excel?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Finance - A company is thinking of investing some surplus cash in 30 years $1000...
finance - 1. Yest Corporation's bonds have a 15-year maturity, a 7% semiannual ...
math - If a company issues bonds with a face value of $1000, a coupon rate of 7...
Finance - As an investor, you are considering an investment in the bonds of the ...
finance - The bonds of company A, carry a 10% annual coupon, have a 100,000 face...
FINANCE - Polycorp Treasury a company in the land of Zanadu is holding a parcel ...
math - Grossnickle Corporation issued 30-year, noncallable, 8.5% annual coupon ...
Finance - Wachowicz Corporation issued 15-year, noncallable, 7.5% annual coupon ...
finance - Leggio Corporation issued 20-year, 7% annual coupon bonds at their par...
Finance - six years ago the Singleton Company issued 20-year bonds with a 14% ...

Members