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 141 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
Wow, this really help

hollysheppard095

  • Member
  • Posts: 339
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Critical thinking and delegation Critical thinking and delegation
Critical thinking attitudes and applications Critical thinking attitudes and applications
Critical thinking and the process of planning care Critical thinking and the process of planning care
In a gear-type oil pump, the oil flows through the pump around the outside of each gear. This is an ... In a gear-type oil pump, the oil flows through the pump around the outside of each gear. This is an ...
Four ways of thinking about the relations among the perception of emotion-inducing stimuli, the ... Four ways of thinking about the relations among the perception of emotion-inducing stimuli, the ...
A company spends $117 500 today and has positive cash inflows of $34 000 for each of the next 6 ... A company spends $117 500 today and has positive cash inflows of $34 000 for each of the next 6 ...
Video: Atrophy

For a complete list of videos, visit our video library