Question 1
Tomʹs Donuts can invest in a new espresso machine that costs $500 and will yield expected profits of $350 each year for two years. At higher interest rates, the present discounted value of profits from the investment
◦ increases.
◦ decreases.
◦ is unchanged.
◦ is indeterminate from the given information.
Question 2
Dynaflex Corp. is considering an investment project that costs $900 today. It expects the project will yield income of $350 at the end of years 1, 2, and 3. If the interest rate is 10%, the firm
◦ should undertake the investment.
◦ should forgo the investment.
◦ is just indifferent between undertaking the investment and not.
◦ indeterminate from the given information
Increasing Costs of Natural Disasters
Relationship between Trust and Investment
Project
Odds please I need it today
Chemistry bonding project (dopamine)