Sophie wants to buy the Ever-so-Young shop around the corner. The following cash flows are involved
Time in years Cash flows (R)
2 200 000
3 –500 000
7 700 000
8 850 000
9 –210 000
Sophie can borrow money at 19% per annum while she can invest at 17,5% per annum.
The present value of the cash outflows is
a. R340 590,94.
b. R357 407,06.
c. R524 888,51.
d. R535 703,05.
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QUIZ
Question 2
Not yet answered
Marked out of 1.00
The following is the price equation for Bond 733:
¬i + 32, 09888
96, 80770 = 7, 5a15
The yearly yield to maturity is
a. 7,87%.
b. 15,74%.
c. 16,55%.
d. 19,39%.