1. Is it possible to make a homogeneous shopping product into a heterogeneous shopping product? Think of examples such as flat-panel tvs and front-loading washers.
2. A project has NPV of $300 at a discount rate of 12%. The original calculation ignored working capital. You have determined that the project will require an investment of working capital of $150 which will be freed up at the end of the project in four years. What is the revised estimate of the NPV?
3. SJU Corp. issued a 10 year bond at a price of $1,000 exactly one year ago in the US. The bond pays an annual coupon rate of 6% and the coupon interest is paid every six month. If the current market interest rate for this class of bond is 8%, ?a. what is the value of the bond right now??b. what was the market interest rate for the bond one year ago?