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Author Question: An aircraft company has signed a contract to sell a plane for 20 million. The firm buying the plane ... (Read 67 times)

maegan_martin

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on: Jul 1, 2018
An aircraft company has signed a contract to sell a plane for 20 million. The firm buying the plane will pay for it in 5 annual payments (at year end) of 4 million.
 
  If the firm's cost of capital is 6, what is the net present value of this payment?

Question 2

A trade policy that protects domestic producers from certain actions taken by foreign governments or firms is
 
  A) illegal under WTO rules.
  B) called a contingent protection policy.
  C) considered a beggar-thy-neighbor policy.
  D) intended to protect domestic consumers.


ntsoane kedibone

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

PV = 16.85 million

Answer to Question 2

A


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