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Author Question: If the discount rate is 5 percent, the present value of annual 100,000 payments in perpetuity (i.e., ... (Read 87 times)

mp14

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  • Posts: 534
on: Jun 30, 2018
If the discount rate is 5 percent, the present value of annual 100,000 payments in perpetuity (i.e., continued indefinitely into the future) is
 a. 2,000,000
  b. 1,246,296
  c. 1,000,000
  d. 976,463
  e. infinite

Question 2

If on Monday you can buy 13 Mexican pesos per U.S. dollar and on Wednesday you can buy 15 Mexican pesos per U.S. dollar,
 a. both the U.S. dollar and the Mexican peso have appreciated
  b. both the U.S. dollar and the Mexican peso have depreciated
  c. the U.S. dollar has appreciated and the Mexican peso has depreciated
  d. the U.S. dollar has depreciated and the Mexican peso has appreciated
  e. the Mexican peso has appreciated and the U.S. dollar has remained constant


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vish98

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

C


mp14

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  • Posts: 534
Reply 2 on: Jun 30, 2018
Excellent

adammoses97

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Reply 3 on: Yesterday
Gracias!

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