corporate finance 练习题

corporatefinance练习题ProblemSet1Name___________Major_____________StudentNo._____________Score_______1、NPVAssumethatyouhavetheopportunitytoinvestinamachinethatwillcost$340,000.Themachinewillgeneratecashflowsof$100,000attheendofeachyearandrequiremaintenancecostsof$10,000atthebeginningofeachyear.Iftheeconomiclifeofthemachineisfiveyearsandtherelevantdiscountrateis10percent.a.Shouldyoubuythemachine?b.Whatiftherelevantdiscountrateis9percent?2、BondValuationConsiderabondwithafacevalueof$1,000.Thecouponispaidsemiannuallyandthemarketinterestrate(effectiveannualinterestrate)is12percent.Howmuchwouldyoupayforthebondifa.Thecouponrateis8percentandtheremainingtimetomaturityis20years?b.Thecouponrateis10percentandtheremainingtimetomaturityis15years?3、StockValuationWhizzkids,Inc.isexperiencingaperiodofrapidgrowth.Earningsanddividendspershareareexpectedtogrowatarateof18percentduringthenexttwoyears,15percentinthethirdyear,andataconstantrateof6percentthereafter.Whizzkids’lastdividend,whichhasjustbeenpaid,was$1.15.Iftherequiredrateofreturnonthestockis12percent,whatisthepriceofashareofthestocktoday?4、Annuitya.ErnieElswantstosavemoneytomeettwoobjectives.First,hewouldliketobeabletoretire30yearsfromnowwitharetirementincomeof$300,000peryearfor20yearsbeginningattheendofthe31yearsfromnow.Second,hewouldliketopurchaseacabininthemountains10yearsfromnowatanestimatedcostof$350,000.Heexpectstoearn7percentperyearfrominvestments.Pleasecalculatethesumofthepresentvalueofthecashflows.b.Youaresavingforyourretirement.Youhavedecidedthatoneyearfromtodayyouwilldeposit2percentofyourannualsalaryinanaccountwhichwillearn8percentperyear.Yoursalarylastyearwas$50,000,anditwillincreaseat4percentperyearthroughoutyourcareer.Howmuchmoneywillyouhaveforyourretirement,whichwillbeginin40years?5、EquivalentAnnualCashFlowAmachineisexpectedtoproduceanetinflowof$4,000attheendofthisyearand$4,000nextyearbeforebreaking.Youcanreplaceitnowwithamachinethatcosts$15,000andwillproduceaninflowof$8,000peryearforthreeyears.Shouldyoureplacenoworwaitayear?Assumethattheappropriatediscountrateis6%.126、DecisionTree0.50.250.250.5-$200.5$0$800,0.5-$150-$150-$150$0,0.5$500,0.5$0,0.5$100,0.5$0,0.5DiscountRateis10%Investornot?2years2years