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
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.
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)