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Author Question: A firm has to decide between two projects that cost 10,000 each. Project A will provide a revenue ... (Read 56 times)

P68T

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A firm has to decide between two projects that cost 10,000 each. Project A will provide a revenue 10,700 one year from now, while Project B will provide a revenue of 12,200 two years from now. The interest rate is 10 per year. This firm
 
  A) chooses project A.
  B) chooses project B.
  C) rejects both projects.
  D) is indifferent between projects A and B.

Question 2

You won the 1,000 per year forever lottery. You decided to convert such prize into a lump sum payment. The interest rate is 2 per year. How much is this lump sum payment ?
 
  A) 25,000
  B) 1,000
  C) 50,000
  D) 365,000


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Eunice618

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P68T

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Reply 2 on: Jul 1, 2018
Gracias!


miss.ashley

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Reply 3 on: Yesterday
Wow, this really help

 

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