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Author Question: The interest rate R in an NPV calculation should always A) be the return that the firm could earn ... (Read 135 times)

savannahhooper

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on: Jul 1, 2018
The interest rate R in an NPV calculation should always
 
  A) be the return that the firm could earn on a similar investment.
  B) be the riskless interest rate (e.g., U.S. Treasury bills).
  C) be the rate on corporate bonds.
  D) be the rate of return available in the stock market.
  E) be the interest rate at which the firm has to borrow.

Question 2

What is true about dominant strategies in the game in Scenario 13.11?
 
  A) R1 and C1 are dominant strategies.
  B) R1 and C2 are dominant strategies.
  C) R2 and C1 are dominant strategies.
  D) R2 and C2 are dominant strategies.
  E) There are no dominant strategies.


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nanny

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Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

D


savannahhooper

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Reply #2 on: Jul 1, 2018
Thank you :)


nanny

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Reply #3 on: Jul 1, 2018
Happy to help you


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