An aircraft company has signed a contract to deliver a plane 3 years from now. The price they will receive at the end of 3 years is $20 million. If the firm's cost of capital is 6%, what is the present value of this payment?
What will be an ideal response?
PV = 20/(1.06)3 = $16.79 million
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The distribution of income in the United States became more unequal in the 1990s. One explanation for this trend is that advances in information technologies have ________ low-skilled labor and ________ high-skilled labor
A) decreased the demand for; increased the demand for B) increased the demand for; decreased the demand for C) decreased the supply of; increased the supply of D) increased the supply of; decreased the supply of
La Super Rica is a taco stand in Santa Barbara, California. It is popular with the locals and even the late Julia Child found the food delicious. If La Super Rica is making an economic profit, what is the probable outcome in the taco market?
A) The number of firms will increase, decreasing La Super Rica's demand. B) The number of firms will decrease, decreasing La Super Rica's demand. C) The number of firms will increase, increasing La Super Rica's demand. D) The number of firms will decrease, increasing La Super Rica's demand.
The classical model assumes that
A) imperfect competition predominates in most markets. B) people have money illusion. C) wages and prices are flexible. D) wages are flexible but prices are not.
For an imaginary economy, the value of the consumer price index was 140 in 2013 and 146.5 in 2014 . The economy's inflation rate for 2014 was
a. 4.6 percent. b. 6.5 percent. c. 4.4 percent. d. 46.5 percent.