If a debtor with multiple debts specifies the debt to which a payment is to be applied and the creditor accepts the money, the creditor is bound to apply the money as specified.?
Indicate whether the statement is true or false
True
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Which one of the following is not a cash equivalent?
a. 30-day certificate of deposit b. 60-day commercial paper c. 90-day U.S. treasury bill d. 180-day note issued by a local or state government
Which of the following is an example of controlling external noise?
a. asking people to turn off their cell phones during a meeting b. eating a meal before a meeting so it doesn't distract you c. taking a nap before a big test d. taking some medicine for an upset stomach before a job interview
It is okay to tell a "dumb blonde" joke if your presentation topic supports it
Indicate whether the statement is true or false
Suppose the opportunity cost of capital is 10 percent and you have just won a $1 million lottery that entitles you to $100,000 at the end of each of the next ten years.
a. What is the minimum lump sum cash payment you would be willing to take now in lieu of the ten-year annuity? b. What is the minimum lump sum you would be willing to accept at the end of the ten years in lieu of the annuity? c. Suppose three years have passed and you have just received the third payment and you have seven left when the lottery promoters approach you with an offer to "settle-up for cash." What is the minimum you would accept (the end of year three)? d. How would your answer to part (a) change if the first payment came immediately (at t = 0) and the remaining payments were at the beginning instead of at the end of each year?