Which scenario has a higher present discounted value (assume interest is compounded annually); $100 received in 3 years if the interest rate is 8% or $90 received in 2 years if the interest rate is 7.25%?
A. $100 owed in 3 years
B. $90 owed in 2 years
C. Both scenarios have the same present discounted value.
D. It cannot be determined with information provided.
A. $100 owed in 3 years
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An increase in consumer wealth would shift the aggregate demand curve rightward
Indicate whether the statement is true or false
When a firm sells its good abroad below the cost of producing the good the firm is
A) using the concept of comparative advantage. B) dumping. C) taking advantage of the infant industry argument. D) taking advantage of absolute advantage.
You put your product on 20% off sale market A but leave it unchanged in market B. Sales in A increase from 840 to 1040 units per week while sales in B rise from 770 to 830 . The Difference-in-difference estimate of the effect of the price change is:
a. 80 units b. 100 units c. 120 units d. 130 units
Describe how a speculator can improve social welfare when he correctly anticipates that future demand will be higher than suppliers expect.
What will be an ideal response?