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 53 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

momolu

  • Member
  • Posts: 320
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Critical Thinking Skills chart Critical Thinking Skills chart
Critical Thinking Model Critical Thinking Model
Critical thinking model for safety planning Critical thinking model for safety planning
An Installation by Fred Wilson. An Installation by Fred Wilson.
When the engine is cold, the coolant flows through the bypass. When the engine is cold, the coolant flows through the bypass.
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: Blood Test Basics

For a complete list of videos, visit our video library