+1-415-670-9189
info@expertsmind.com
Time value of money and interest rates
Course:- Finance Basics
Reference No.:- EM1327389




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Finance Basics

Company A purchases obsolete inventory and re-sells it on-line. Company A learns that Company B is selling some obsolete inventory for $100,000. Company A wants to purchase the inventory immediately, but cannot pay afford the $100,000 price tag until one of its other investments matures and becomes available in two years. In exchange for obtaining the obsolete inventory now, Company A offers to pay Company B $121,000 in two years.

Assuming interest rates remain at 10% over the next two years, should Company B accept Company As offer?

Why or why not? Explain.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Finance Basics) Materials
Compare and contrast knowledge, skills, abilities, and other characteristics (KSAOs) and tasks, duties, and responsibilities (TDRs) as they relate to different processes of
What is the number of defectives they can be 95% confident that the population mean is below? What is the number of defectives they can be 95% confident that the population
The Jobs and Growth Tax Relief Reconciliation Act of 2003 changed the tax treatment of corporate dividends for most taxpayers. The result is noticeably higher dividend pa
Which statistical procedure would you use to predict the number of times teenagers consider running away from home based on the number of hours of quality time they spend wi
Rachelle transfers property with a tax basis of $800 and a fair market value of $900 to a corporation in exchange for stock with a fair market value of $750 and $50 in a trans
Do some reading in periodicals and/or on the Internet to find out more about the Sarbanes-Oxley Act’s provisions for companies. Select one of those provisions, and indicate wh
Create an interesting example problem and present a solution for it related to decision analysis methods under uncertainty that you have learned in this course. Your solutio
1)The total return on a share of stock refers to the dividend yield less any commissions paid when the stock is purchased or sold. a)      True b)      False