公司财务原理 第八版 课后习题答案详解.pdf

CHAPTER 2 Present Values, The Objectives of the Firm, and Corporate Governance Answers to Practice Questions 1. The face value of the treasury security is $1,000. If this security earns 5%, then in one year we will receive $1,050. Thus: NPV = C + [C /(1 + r)] = −$1000 + ($1050/1.05) = 0 0 1 This is not a surprising result because 5 percent is the opportunity cost of capital, i.e., 5 percent is the return available in the capital market. If any investment earns a rate of return equal to the opportunity cost of capital, the NPV of that investment is zero. 2. NPV = −$1,300,000 + ($1,500,000/1.10) = +$63,636 Since the NPV is positive, you would construct the motel. Alternatively, we can compute r as follows: r = ($1,500,000/$1,300,000) – 1 = 0.1539 = 15.39% Since the rate of return is greater than the cost of capital, you would construct the motel. 3. Investment NPV Return (1) 18,000 18,000 −10,000 −10,000 + $5,000 0.80 80.0% 1.20 10,000 (2) 9,000 9,000 −5,000 −5,000 + $2,500 0.80 80.0% 1.20 5,000 (3) 5,700 5,700 −5,000 −5,000 + −$250 0.14 14.0% 1.20 5,000 (4) 4,000