PRACTICE QUESTIONS

习题

1. Write down the formulas for an investment’s NPV and rate of return. Prove that NPV is positive only if the rate of return exceeds the opportunity cost of capital.

1.写出NPV和回报率的公式。证明只有当回报率超过资本机会成本时NPV才为正。

2. What is the net present value of a firm’s investment in a U.S. Treasury security yielding 5 percent and maturing in one year? Hint: What is the opportunity cost of capital? Ignore taxes.

2.企业投资于一年内到期的收益率5%的美国财政部证券的净现值是多少？提示：资本机会成本是多少？不考虑税收。

3. A parcel of land costs $500,000. For an additional $800,000 you can build a motel on the property. The land and motel should be worth $1,500,000 next year. Suppose that common stocks with the same risk as this investment offer a 10 percent expected return. Would you construct the motel? Why or why not?

3.一块土地成本$500,000。再投入$800,000你可以在其上建一家汽车旅馆。土地和汽车旅馆在下一年可值$1,500,000。假设与投资有相同风险的普通股的期望收益率是10%。你会建造汽车旅馆吗？为什么是或为什么否？

4. Calculate the NPV and rate of return for each of the following investments. The opportunity cost of capital is 20 percent for all four investments. Excel

a. Which investment is most valuable?

b. Suppose each investment would require use of the same parcel of land. Therefore you can take only one. Which one? Hint: What is the firm’s objective: to earn a high rate of return or to increase firm value?

4. C计算以下每一项投资的NPV和回报率。所有四项投资的资本机会成本都是20% Excel

a.哪一项投资最有价值？

b.假设每一项投资都要求使用同样的一块土地。因此你只能接受其中一项。哪一个？提示：企业的目标是什么：是获得高的回报率还是增加企业价值？

5. In Section 2.1, we analyzed the possible construction of an office building on a plot of land appraised at $50,000. We concluded that this investment had a positive NPV of $7,143 at a discount rate of 12 percent. Suppose E. Coli Associates, a firm of genetic engineers, offers to purchase the land for $60,000, $30,000 paid immediately and $30,000 after one year. United States government securities maturing in one year yield 7 percent.

a. Assume E. Coli is sure to pay the second $30,000 installment. Should you take its offer or start on the office building? Explain.

b. Suppose you are not sure E. Coli will pay. You observe that other investors demand a 10 percent return on their loans to E. Coli. Assume that the other investors have correctly assessed the risks that E. Coli will not be able to pay. Should you accept E. Coli’s offer?

5.在Section 2.1，我们分析了在一块评估作价$50,000的土地上建造一幢办公楼的可行性。我们得出在12%的贴现率下，这项投资有一个正的NPV$7,143。假设E. Coli Associates，一家基因工程企业，开出$60,000收购这块土地，$30,000立即支付，另$30,000一年后支付。一年内到期美国政府证券的收益率是7%。

a.假定E. Coli肯定可以支付第二笔$30,000的分期付款（installment — [countable] one of a series of regular payments that you make until you have paid all the money you owe），你应该接受它的出价还是开始建造办公楼？并解释。

b.设你不肯定E. Coli将会付款。你观察到其他投资者对E. Coli的贷款要求一个10%的回报率。假设其他投资者已经正确评估了E. Coli将不能付款的风险。你应该接受E. Coli的出价吗？

6. Explain why the discount rate equals the opportunity cost of capital.

6.解释为什么贴现率等于资本机会成本。

7. Norman Gerrymander has just received a $2 million bequest. How should he invest it? There are four immediate alternatives. Excel

a. Investment in one-year U.S. government securities yielding 5 percent.

b. A loan to Norman’s nephew Gerald, who has for years aspired to open a big Cajun restaurant in Duluth. Gerald had arranged a one-year bank loan for $900,000, at 10 percent, but asks for a loan from Norman at 7 percent.

c. Investment in the stock market. The expected rate of return is 12 percent.

d. Investment in local real estate, which Norman judges is about as risky as the stock market. The opportunity at hand would cost $1 million and is forecasted to be worth $1.1 million after one year.

Which of these investments have positive NPVs? Which would you advise Norman to take?

7. Norman Gerrymander（人名）刚接受了一笔$2,000,000遗产（bequest — [countable] formal money or property which you arrange to give to someone after your death）。他应该如何用这笔钱投资？有四项立即可供选择。Excel

      a.投资一年期收益率5%的美国政府证券

b.一笔贷款给Norman的侄子Gerald，多年以来一直向往（aspire — [intransitive] to desire and work towards achieving something important）在Duluth（地名）开一家大型Cajun（someone from Louisiana in the US who has French-Canadian ancestors）餐馆。Gerald已经安排了一笔一年期、10%利率、$900,000的银行贷款，但还是以7%的利率向Norman索要一笔贷款。

c.投资股票市场。期望回报率12%。

d.投资当地房产市场，Norman判断风险大约和股票市场相同。手头的机会是现在投资$1,000,000并预测在一年后可值$1,100,000。

这些投资中哪些有正的NPV？你会建议Norman接受哪些？

8. Show that your answers to Practice Question 7 are consistent with the rate of return rule for investment decisions.

8.表明你的习题7的答案是与投资决策的回报率规则相一致的。

9. Take another look at investment opportunity (d) in Practice Question 7. Suppose a bank offers Norman a $600,000 personal loan at 8 percent. (Norman is a long-time customer of the bank and has an excellent credit history.) Suppose Norman borrows the money, invests $1 million in real estate opportunity (d) and puts the rest of his money in opportunity (c), the stock market. Is this a smart move? Explain.

9.换一个角度看一下习题7的投资机会(d)。假设一家银行以8%的利率提供给Norman一笔$600,000的个人贷款（Norman是这家银行的长期顾客而且有一个极好的信用历史）。假设Norman借了这笔钱，投资$1,000,000于房产机会(d)并把剩余的钱投入机会(c)股票市场。这是一个明智的举动吗？并解释。

10. Respond to the following comments.

a. “My company’s cost of capital is the rate we pay to the bank when we borrow money.”

b. “Net present value is just theory. It has no practical relevance. We maximize profits. That’s what shareholders really want.”

c. “It’s no good just telling me to maximize my stock price. I can easily take a short view and maximize today’s price. What I would prefer is to keep it on a gently rising trend.”

10.对下列评论做出回应。

       a.“我公司的资本成本就是我们向银行借款支付的利率。”

b.“净现值只不过是理论。它没有实际关联。我们最大化利润。那才是股东真正想要的。”

c.“只告诉我要让我的股票价格最大化是没什么用的。我很容易就可以采取短期行为并且让今天的价格最大化。我何必要在一个平缓上升的趋势里去持有它”

11. Ms. Smith is retired and depends on her investments for retirement income. Mr. Jones is a young executive who wants to save for the future. They are both stockholders in Airbus, which is investing over $12 billion to develop the A380, a new super-jumbo airliner. This investment’s payoff is many years in the future. Assume the investment is positive-NPV for Mr. Jones. Explain why it should also be positive-NPV for Ms. Smith.

11. Ms. Smith退休了并且依赖退休收入的投资。Mr. Jones是一位年轻的执行官希望为未来存钱。他们都是空中客车的股东，（该公司）投资了超过120亿美元用于开发A380，一种新型巨无霸飞机。这项投资的收益在很久的将来。假定这些投资对Mr. Jones来说是正的NPV。解释为什么对Ms. Smith来说它也应该是正的。

12. Answer this question by drawing graphs like Figure 2.1. Casper Milktoast has $200,000 available to support consumption in periods 0 (now) and 1 (next year). He wants to consume exactly the same amount in each period. The interest rate is 8 percent. There is no risk.

a. How much should he invest, and how much can he consume in each period?

b. Suppose Casper is given an opportunity to invest up to $200,000 at 10 percent risk-free. The interest rate stays at 8 percent. What should he do, and how much can he consume in each period?

c. What is the NPV of the opportunity in (b)?

12.用画出类似图表2.1的图形来回答这个问题。Casper Milktoast（人名）有$200,000可供支持0期（现在）和1期（下一年）的消费。他想在每一期消费完全相同的金额。利率8%，无风险。

       a.他应该投资多少，以及他每一期可以消费多少？

       b.设Casper有一个以10%无风险利率投资最多$200,000的机会。利率维持8%。他应该怎么做，以及他每一期可以消费多少？

       c.(b)机会的NPV是多少？

13. We said that maximizing value makes sense only if we assume well-functioning capital markets. What does “well-functioning” mean? Can you think of circumstances in which maximizing value would not be in all shareholders’ interests?

13.只有当我们假设一个运行良好的资本市场（的存在）我们说i最大化价值有意义。“运行良好”是什么意思？你能想一下在什么环境中，最大化价值将不是所有股东的最佳利益？

14. Why is a reputation for honesty and fair business practice important to the financial value of the corporation?

14.为什么诚实和公平交易的信誉对公司的财务价值是重要的？