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Author Question: The authors provide an example that illustrates the calculation of the present discounted value for ... (Read 102 times)

james0929

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on: Jul 1, 2018
The authors provide an example that illustrates the calculation of the present discounted value for the lost wages from a deceased worker, and one component in this calculation is the worker's annual mortality rate (m).
 
  Suppose we conduct this computation in two different ways --- one calculation assumes m is constant for all future periods, and the other calculation allows m to decline over time due to improvements in medical technology. Which estimated PDV will be larger? A) The PDV with constant m will be larger
  B) The PDV with variable m will be larger
  C) The two PDV's will be equal
  D) The answer to this question depends on the assumed interest rate

Question 2

Refer to Scenario 10.1. The price of her product will be ________.
 
  A) 4
  B) 22
  C) 32
  D) 42
  E) 72


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stallen

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

B

Answer to Question 2

B


james0929

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Reply 2 on: Jul 1, 2018
Gracias!

raenoj

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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