This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Ricky is thinking about borrowing 10,000 from Fred. He promises Fred cash flows of 5000 for the next ... (Read 147 times)

Marty

  • Hero Member
  • *****
  • Posts: 553
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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Dnite

  • Sr. Member
  • ****
  • Posts: 297
Reply #1 on: Jul 1, 2018
Answer to Question 1

c

Answer to Question 2

a


Marty

  • Member
  • Posts: 553
Reply 2 on: Jul 1, 2018
Gracias!

  • Member
  • Posts:
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Components of critical thinking in nursing Components of critical thinking in nursing
The energy set-point view that is the basis of many people’s thinking about hunger and eating. The energy set-point view that is the basis of many people’s thinking about hunger and eating.
Higher-Level Thinking Skills Used in Massage Therapy Higher-Level Thinking Skills Used in Massage Therapy
Math Thinking Problem Math Thinking Problem
Ricky Martin - She's All I Ever Had (Official Music Video) Ricky Martin - She's All I Ever Had (Official Music Video)
Energy flows from the environment into living organisms, then back to the environment Energy flows from the environment into living organisms, then back to the environment
Video: Neural regulation of blood pressure - baroreceptor and chemoreceptor reflexes

For a complete list of videos, visit our video library