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Author Question: Suppose that your college offers you two payment plans. You may either pay tuition of 10,000 per ... (Read 41 times)

melina_rosy

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Suppose that your college offers you two payment plans. You may either pay tuition of 10,000 per year at the beginning of each of the next four years, or pay just 38,000 before the start of freshman year. If the interest rate is 10, what would you do? If the interest rate were 2, what would you do? Intuitively explain the difference in your answer.
 
  What will be an ideal response?

Question 2

Explain why a firm may rationally make an investment when its cash flow from the investment is not positive each year.
 
  What will be an ideal response?


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SamMuagrove

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melina_rosy

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Reply 2 on: Jul 1, 2018
Gracias!


aliotak

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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