Author Question: If the discount rate is 5 percent, the present value of annual 100,000 payments in perpetuity (i.e., ... (Read 89 times)

mp14 · **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