Calculate the interest of a $1000 bond that pays 3.75% annually with a purchase date of Jan. 1, 2012 and a maturity date of December 31, 2017.
Using the information from the question above, calculate the interest if the bond if called on December 31, 2014 and reissued, Nancy's Notions pays a delivery firm to distribute its products in the metro area. Delivery costs are $34,000 per year. Nancy can buy a used truck for $12,000 that will be adequate for the next 3 years. Operating and maintenance costs are estimated to be $21,000 per year. At the end of 3 years, the used truck will have an estimated salvage value of $2,500. Nancy's MARR is 19%/year. What is this investment's internal rate of return?
a) IRR =?
b) Should Nancy buy the truck? at 3.25% with the same maturity date.