Course Project 1

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Course Project – Part I
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Introduction

The Course Project is an opportunity for you to apply concepts learned to a real-life simulation experience. Throughout the Course Project, you will assume that you work as a financial analyst for Aero Plain, Inc. The Course Project is provided in two parts as follows:

Part I – In Part I, you work with Aero Plain, Inc. staff to identify the best loan options, as well as to valuate stocks and bonds.
Part II – In Part II, you will provide the company with a recommendation for purchasing a new machine. You will base your recommendation on the Net Present Value (NPV) of the capital investment project using the cost of capital (WACC) as your discount rate.

PART I | Here is how you will be graded: | Possible | Earned | Task 1: | Assessing loan options | | | | Convert APR to EAR: | | | | Screen Shot | 3 | | | Calculations | 7 | | | Decision | 5 | | | Calculate payments | 10 | | | Calculate total of payments | 10 | | | Decision | 5 | | | Calculate LoansRUS monthly payments | 10 | | | Calculate LoansRUS total payments | 5 | | | Decision | 5 | | Task 2: | Bond Evaluation | | | | At what coupon rate will the market price equal the par value? | 10 | | | What is the difference between the coupon rate and the YTM | 10 | | | What factors will contribute to the riskiness of bonds | 10 | | | Positive and negative covenants and their effect on bond price? | 10 | | Task 3: | Evaluating…...

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