Ricky is thinking about borrowing $10,000 from Fred. He promises Fred cash flows of $5000 for the next three years. If Fred's cost of capital is 10%, what is the Net Present Value of the investment for Fred?
a. -$126.55
b. $1,342.76
c. $2,434.26
d. -$1,322.31
c
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Refer to Table 1-4. Using marginal analysis, how many hours should Eva extend her bakery's hours of operations?
A) 2 hours B) 3 hours C) 4 hours D) 5 hours E) 6 hours
Suppose that on Monday, a Big Mac cost $3.00 in the United States and 320 Japanese yen in Japan. On Monday, the exchange rate was $1 = 90 yen. According to the purchasing power parity theory, the yen was __________ by approximately __________ percent
A) overvalued; 22 B) undervalued; 40 C) overvalued; 29 D) undervalued; 19 E) overvalued; 19
A firm that experiences only constant returns to scale will have a U-shaped long-run average cost curve.
Answer the following statement true (T) or false (F)
Refer to Table 9.2. (Data are expressed in billions of dollars.)Table 9.2 Full Employment Income (Output)Consumers Desire to SpendInvestors Desire to SpendTotal Private SpendingTotal Saving$500$300$250$________$________600375250$________$________700450250$________$________800525250$________$________Given the information in Table 9.2, saving equals investment at an income of
A. $700 billion. B. $800 billion. C. $500 billion. D. $600 billion.