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MSC,MBA(IT)
Standford
Jun-1997 - Sep-2000
IT Manager
Honeywell
Aug-2001 - Present
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5-L. In your own words, explain to your grandmother why the values of various government bonds go up when the interest rates in the U.S. economy drops. (5.3)
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5-1. Tennessee Tool Works (TTW) is considering investment in five independent projects, Any profitable combination of them is feasible.
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|
 |
A |
B |
C |
D |
E |
|
Capital investment |
 |
 |
 |
 |
 |
|
(millions) |
$10 |
$25 |
$30 |
$30 |
$5 |
|
Annual rate of |
 |
 |
 |
 |
 |
|
profit (%) |
30 |
10 |
12 |
15 |
25 |
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TTW has $50 million available to invest, and these funds are currently earning 7% interest annually from municipal bonds. If the funds available are limited to $50 million, what is TTW’s MARR that is implied by this particular situation? (5.2)
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