An aircraft company has signed a contract to sell a plane for $20 million. The firm buying the plane will pay for it in 5 annual payments (at year end) of $4 million
If the firm's cost of capital is 6%, what is the net present value of this payment?
PV = $16.85 million
You might also like to view...
When the unemployment rate is ________ the natural unemployment rate, real GDP is ________ potential GDP
A) below; above B) above; the same as C) the same as; below D) the same as; above E) above; above
Roughly what percentage of money income was earned by the lowest 20% of income earners in the U.S. in 2010?
A) 0.8% B) 3.8% C) 6.8% D) 9.8%
Explain how Eurobanks played a role in the Iranian Hostage Crisis in 1979
What will be an ideal response?
If the money multiplier is 2.4 and the Fed buys $8 million in securities on the open market, transaction deposits could potentially
A) decrease by $16.5 million. B) increase by $8 million. C) decrease by $19.2 million. D) increase by $19.2 million.