1. How is the profitability index calculated and how can it be used to choose between projects when funds are limited?
2. Why might an investor prefer a convertible bond over a regular bond?
3. The IF for the future value of an annuity is 4.5% at 8% for 4 years. If we wish to accumulate $5,000 by the end of 4 years, how much should the annual payments be?
A) 22,500
B) 1,250
C) 1,111
D) 2,250