What is the present discounted value of receiving

Assignment Help Business Economics
Reference no: EM13887743

1. What is the present discounted value of receiving $100 right now, $200 in one year, and $500 in five years? Show your work, and assume r=10%.

2. What is the present discounted value of receiving $100 right now, $500 in one year, and $300 in two years? Show your work, and assume r=10%.

Reference no: EM13887743

Questions Cloud

Substitution and income effects of an increase in the price : Suppose that when the price of X goes up, you respond by consuming less Y . Illustrate the substitution and income effects of an increase in the price of X. How does your graph illustrate the information in italics above? Is Y a normal good or an inf..
Is it possible to tell in which month you are happier : In April, eggs cost $2 per dozen, wine costs $1 per bottle, your income is $120, and you buy 50 dozen eggs. In May, eggs cost 50 cents per dozen, wine still costs $1 per bottle, and your income is $60. Is it possible to tell in which month you are ha..
Determine whether bob and ray have identical tastes : Bob and Ray buy only two goods, ice cream and root beer. They both get their root beer at Root Beer City, where they pay $1 a bottle. Bob is indifferent between the baskets (1, 3) and (2, 2). Ray is indifferent between the baskets (2, 2) and (3, 1). ..
Widgets are supplied by a competitive constant-cost industry : Widgets are supplied by a competitive constant-cost industry. On Monday, the industry is in both short-run and long-run equilibrium. On Tuesday, the demand for widgets increases and the industry moves to a new short-run equilibrium. On which day or d..
What is the present discounted value of receiving : What is the present discounted value of receiving $100 right now, $200 in one year, and $500 in five years? Show your work, and assume r=10%. What is the present discounted value of receiving $100 right now, $500 in one year, and $300 in two years? S..
Currently there is a draft for top NFL prospects : Currently there is a draft for top NFL prospects. Suppose instead that due to a lawsuit, all NFL prospects were free agents. If the assumptions of the Coase Theorem held before and after this change, what would you expect to happen to competitive bal..
Movements of gold between countries under the gold standard : What determined movements of gold between countries under the gold standard, and why? Under the gold standard "rules of the game" would such movements be likely to consume until a country's gold stock was depleted? Why or why not?
Convertibility be important for establishment of paper money : Why might convertibility be important for the establishment of paper money? Would you expect it to remain as important if the paper money has the status of legal tender? Explain why or why not.
Governments often place so-called sin taxes on goods-service : Governments often place so-called sin taxes on goods or services such as cigarettes, alcohol, and pornography. These kinds of taxes are popular with politicians because they are usually more palatable to voters than income taxes.

Reviews

Write a Review

Business Economics Questions & Answers

  Q pickles at the sour pickles ranch are picked either by

q. pickles at the sour pickles ranch are picked either by labor or by a machine. labor can be obtained very cheaply -

  Explain how the market for corn would be affected if ethanol

Explain how the market for corn would be affected if ethanol, a corn derivative, was used to fuel cars in the united States. How would the market be effected if new technology cause corn farming to be more efficient.

  Expected capital gains yield

If interest rates remain unchanged, what is the expected capital gains yield, stated as a percentage, over the next year for Bond A and for Bond B.

  Short-run market supply curve

Illustrate what is the short-run market supply curve. Find out the short-run equilibrium cost and quantity in this industry.

  Q1 the country of numidia does not trade with any other

q1. the country of numidia does not trade with any other country. its gdp is 20 billion. its government collects 4

  Change in the quantity supplied

What is the difference between a change in the quantity supplied and a shift in the supply curve.

  Madelyn owns a small pottery factory

Madelyn owns a small pottery factory. She can make 1,000 pieces of pottery every year also sell them.

  Arcane rules and precedents in processing legislation

Why do members of the House and Senate follow complex, arcane rules and precedents in processing legislation even when such devices keep majorities from getting their way?

  Pros and cons of reaching negotiated deal versus auctioning

A movie made by a motion picture company had a large amount of bad publicity during its production due to being over-budget, its length being too long, and an element of uncertain topic-content appeal. It’s opening weekend showed a solid but not spec..

  Compute return on each of investments-annual compounding

You have $1000 to invest over an investment horizon of three years. The bond market offers various options. You can buy (a) a sequence of three one year bonds (b) a three year bond or (c) a two year bond followed by a one year bond. The current yield..

  Briefly explain which component of aggregate expenditure

Briefly explain which component of aggregate expenditure will be affected by each of the following transactions. also , indicate whether it will increase or decrease. Suppose the United States experiences a long period of relatively stable prices whi..

  Domestic subsidy to enable an industry

A domestic subsidy to enable an industry to compete against imports:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd