The formula for present discounted value is ________, where R dollars is to be paid t years in the future and the agreed upon interest rate is r.
A. (1 + r)t/R
B. (1 + r)/Rt
C. R/(1 + r)t
D. R(1 + r)t
Answer: C
You might also like to view...
People must make choices because
A) most people enjoy shopping. B) of scarcity. C) there are many goods available. D) the question "What goods and services are produced?" is not adequately answered. E) making choices is in the social interest.
If, for a producer, large changes in price lead to relatively small changes in quantity, the producer's
A) demand is price elastic. B) demand is price inelastic. C) supply is price elastic. D) supply is price inelastic.
To reduce Agency problems, executive compensation should be designed to
a. be paid baased on quarterly sales b. create incentives so that managers act like owners of the firm c. avoid making the executives own shares in the company d. be an increasing function of the firm's expenses e. all of the above
Consider an oil company that can pump oil from a reserve either this year or next year. As expected future profits decrease, the extraction quantity this year:
A. Increases due to a higher user cost B. Increases due to a lower user cost C. Decreases due to a higher user cost D. Decreases due to a lower user cost