1. Future Semiconductors is evaluating a new etching tool. The equipment costs $931,000 and will generate after-tax cash inflows of $483,000 per year for six years. Assume the firm has a 18% cost of capital. What’s the NPV of the investment?
2. Yan Yan Corp. has a $5,000 par value bond outstanding with a coupon rate of 5.4 percent paid semiannually and 13 years to maturity. The yield to maturity of the bond is 5.9 percent. What is the dollar price of the bond?