An aircraft company has signed a contract to sell a plane for 20 million. The firm buying the plane will pay for it in 5 annual payments (at year end) of 4 million.
If the firm's cost of capital is 6, what is the net present value of this payment?
Question 2
A trade policy that protects domestic producers from certain actions taken by foreign governments or firms is
A) illegal under WTO rules.
B) called a contingent protection policy.
C) considered a beggar-thy-neighbor policy.
D) intended to protect domestic consumers.
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