« previous next »

Author Question: A reduction in the rate of depreciation will cause the discounted present value of expected profits ... (Read 97 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?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Changes in the abundance and egg-hatching success rate of prairie chickens. Changes in the abundance and egg-hatching success rate of prairie chickens.
Factors that Influence Pulse Rate Factors that Influence Pulse Rate
Advection of an air mass with a different ELR (environmental lapse rate). Advection of an air mass with a different ELR (environmental lapse rate).
How to convert units of any rate to another (Part 3) How to convert units of any rate to another (Part 3)
Total Fertility Rate in the United States, 1860–2008 Total Fertility Rate in the United States, 1860–2008
Opener Chiasmata present between synapsed homologs during the first meiotic prophase Opener Chiasmata present between synapsed homologs during the first meiotic prophase
Video: Structures that affect circulation - kidneys, blood volume and venous tone

For a complete list of videos, visit our video library