Discounted Cash Flow

Zber Corp is evaluating whether to embark on a construction project. The project requires and initial investment of $20M, and a further $5M at the beginning of the 2nd and 3rd years. Upon completion at the end of the fifth year, the estimated selling price of the project is $50M. Determine the IRR of the project.

Zber Corp evaluates another project and found that its IRR is 14.5%. Under which scenario would the project be palatable to Zber corp?

Zber Corp evaluated two projects. Project A has an NPV of $45. Project B has an NPV of -$5.
If they are not mutually exclusive, which project should Zber Corp choose?

Chan paid $97,500 for a 200-day US T-bill with a face value of $100,000. Match the following figures to their correct yields.

Sort these (highest at top) according to their calculated yield on the same T-bill with positive yield.

A T-bill with $100,000 face value was purchased at $98,500 with 100 days to maturity. Which of the following yields is closest to 1.5%?

A T-bill with 200 days to maturity has an effective annual yield of 5.8%. What is its money market yield?

Which of the following most likely is a characteristic of money weighted market return.

Robert opened an investment account and made an initial investment of $100,000. The account earned a return of 15% in the first year. At the beginning of the second year, Robert placed another $500,000 into the account. The account earned a return of 10% in the second year. The money weighted rate of return of the account is most likely:

At t=0, and investor buys a share of a stock at $400.
At t=1, he receives $20 dividend per share. He buys another 2 shares at $300 each.
At t=2, he receives $20 dividend per share. He sells all 3 shares at $350 each.

What is the MWRR and TWRR?

Zber Corp evaluated two projects. Project C has an IRR of 8.9%. Project D has an IRR of 18.2%.
If they are mutually exclusive, which project should Zber Corp choose?

The effective annual yield of a T-bill is 6%. What is its bond equivalent yield? (Round your answer to 1 decimal place)

Anita bought a bond for $928 and sells it 6 months later for $870. She received a coupon of $50 at the same time. What is the holding period return?