1. Technical Sales, Inc. has 6.6 percent coupon bonds on the market with 9 years left to maturity. The bonds make semiannual payments and currently sell for $887.9 percent. The face value is $1,000. What is the effective annual yield?
2. Evaluate the efficiency of two common inventory control systems. Determine the ways in which they provide a firm with a competitive advantage in the marketplace. Justify your response.
3. A firm is considering an unusual project of the selling of a machine today that will result in an immediate inflow of $530. Without the use of the machine the firm will incur an annuity of outflows of $69 per year that begin at the end of year one, and continue for 3consecutive years. The required rate of return is 7.10%. What is the project's net present value (NPV)?