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Author Question: Ricky is thinking about borrowing 10,000 from Fred. He promises Fred cash flows of 5000 for the next ... (Read 90 times)

Marty

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on: Jul 1, 2018
Ricky is thinking about borrowing 10,000 from Fred. He promises Fred cash flows of 5000 for the next three years. If Fred's cost of capital is 10, what is the Net Present Value of the investment for Fred?
 a. -126.55
 b. 1,342.76
 c. 2,434.26
 d. -1,322.31

Question 2

What is the maximum that the firm can charge for the no-name brand wok without losing customers?
 a. 50
 b. 60
 c. 70
 d. 100


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Dnite

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

c

Answer to Question 2

a


Marty

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Reply 2 on: Jul 1, 2018
Thanks for the timely response, appreciate it

covalentbond

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Reply 3 on: Yesterday
Excellent

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