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Author Question: The net present value without adjusting the discount rate for risk is ________. (See Table 11.7) ... (Read 70 times)

tnt_battle

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on: Jul 10, 2018
The net present value without adjusting the discount rate for risk is ________. (See Table 11.7)
 
  A) 336,000
  B) 250,000
  C) 179,400
  D) 87,000

Question 2

Calculate the present value of 89,000 to be received in 15 years, assuming an opportunity cost of 14 percent.
 
  What will be an ideal response?


Liddy

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Reply #1 on: Jul 10, 2018
Answer to Question 1

D

Answer to Question 2

PV = 89,000(1.14)-15 = 12,469


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