« previous next »

Author Question: A reduction in the rate of depreciation will cause the discounted present value of expected profits ... (Read 46 times)

Beheh

  • Hero Member
  • *****
  • Posts: 520
on: Jun 30, 2018
A reduction in the rate of depreciation will cause the discounted present value of expected profits to
 
  A) decrease.
  B) increase.
  C) remain unchanged if the real interest rate increases by the same amount.
  D) none of the above

Question 2

For this question, assume that expected inflation is equal to the nominal interest rate. In this situation, which of the following is correct?
 
  A) The real interest rate is negative.
  B) The real interest rate is positive.
  C) The real interest rate is higher than the nominal interest rate.
  D) The real interest rate is zero.


cloudre37

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Maximal Heart Rate Over Time Maximal Heart Rate Over Time
Influence of substrate concentration on the rate of an enzyme-catalyzed reaction. Influence of substrate concentration on the rate of an enzyme-catalyzed reaction.
The Amounts of the Different Minerals in Your Body The major minerals are present in larger amounts The Amounts of the Different Minerals in Your Body The major minerals are present in larger amounts
Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ... Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ...
Some of the Alleles present at white locus Some of the Alleles present at white locus
Rate order question Rate order question
Video: Molecules, Membrane Permeability and Structure

For a complete list of videos, visit our video library