The Quando Company's board of directors in Singapore was presented with the following list of investment projects for implementation in 2010:

POOJECT	TOTAL COST SINGAPORE DOLLARS	ESTIMATED RATE OF RETURN
Factory in Kuala Lumpur	$17,356,400	13%
Factory in Bangkok	15,964,200	15
A new company aircraft	10,000,000	12
A factory outlet store	3,500,000	18
A new computer network	2,000,000	20
A cafeteria for workers	1,534,000	7

Draw total investment as a function of interest rate (interest rate on$Y$-axis). Singapore currently has an interest rate of 8%. What amount of investment would you suggest to Quando's board?

According to the text, the majority of stock in the United States is held by households through institutions, and the percentage of institutional holding (as well as the percentage of insider holding) varies depending on the maturity of the company. Choose two publicly traded companies in your area, one of which is relatively new and the other is relatively mature. To find trading information, go to www.finance.yahoo.com and enter each company in the "GET QUOTES" dialogue box, then click on "Key Statistics." Examine each company's share statistics. Describe the difference between the percentages of shares held by institutions and insiders for the two companies.

Bailey, Kaylee, Haley, and Joyce are four sorority sisters who discovered an opportunity to buy an Internet café. To make the purchase, each of the women would have to put up $$ 80,000. The café's revenue is expected to remain stable at $225,000 per year for the foreseeable future. The costs of running the café (excluding the opportunity costs of the investment). $$

Create a graph of an investment demand curve and explain its slope.

Wanda approaches Celia, an analyst with a venture capital firm, about financing her new business venture, a company that will build electricity-generating windmills for residential use. What information should Celia have before deciding whether to fund Wanda's new business?

The Red Sox won the World Series on October 29, 2007. The stock market rose on the same day. The S&P 500 index (an index of the 500 largest corporations in the United States) closed at $1540.98$. Ten-year Treasury notes paid $4.38 \%$ on the government's 10-year obligations. The Fed was set to announce a quarter-point reduction in the fed funds rate to $4.75$ percent. Look up the S&P 500, the 10-year treasury interest rate, and the fed funds rate today. They can be found at http://money.cnn.com. Please explain what has happened to those three numbers since 2007.

What will happen to the present value of money if the market interest rate falls in a year? What happens if market interest rates rise?

How would your responses to the preceding question change if the annual payments were increased to $\$ 2,000,000$ per year for 15 years?

In March 2008, the General Motors building in Manhattan was put up for auction. The skyscraper was expected to fetch more than $3 billion at the time, a record for a single structure. What would you want to know first if you were a real estate investment firm considering bidding on this building? What specific factors would require you to form expectations? What data would you require to form those expectations?

Describe your college or university's capital stock. How would you go about determining its worth? Has your school recently made any significant investments?  If so, describe them. What does your school hope to gain from these investments?

Teresa won the Florida lottery and was given the option of receiving $\$22$ million right away or $\$1.250,000$ per year for the next 30 years. a. How much will Teresa receive in total if she chooses the 30 annual payments? b. Given a 4percent interest rate, what is the present value of the 30 annual payments? Should Teresa choose the upfront payment or the 30 instalments based on this value? c. Given an interest rate of 8percent, what is the present value of the 30 annual payments? Should Teresa choose the upfront payment or the 30 instalments based on this value?

Which of the following is a capital letter, and which is not? Explain your responses. a. A video poker game machine at a local bar that takes quarters b. A $\$ 10$ bill c. A college education d. The Golden Gate Bridge e. The shirts on the rack at Sears f. A government bond g. The Empire State Building h. A savings account i. The Washington Monument j. A Honda plant in Marysville, Ohio

Assume you were offered $2,000 to be delivered in one year. Assume you had the option of putting your money in a safe certificate of deposit that paid a 10percent annual interest rate. Would you be willing to pay$1,900 in exchange for $2,000 after a year? What is the most you would be willing to pay for the$2,000 offer? Assume the offer was $ 2,000, but delivery was to take two years rather than one. What is the highest amount you are willing to pay?

Smith has an investment opportunity that pays 33 with probability $1 / 2$ and loses 30 with probability $1 / 2$. (LO3)

a. If his current wealth is $M=111$, and his utility function is $U=\sqrt{M}$, will he make this investment?

b. Will he make it if he has two equal partners? (Be sure to calculate the relevant expected utilities to at least two decimal places.)