Author Question: The net present value without adjusting the discount rate for risk is ________. (See Table 11.7) ... (Read 67 times)

tnt_battle

  • Hero Member
  • *****
  • Posts: 556
The net present value without adjusting the discount rate for risk is ________. (See Table 11.7)
 
  A) 336,000
  B) 250,000
  C) 179,400
  D) 87,000

Question 2

Calculate the present value of 89,000 to be received in 15 years, assuming an opportunity cost of 14 percent.
 
  What will be an ideal response?



Liddy

  • Sr. Member
  • ****
  • Posts: 342
Answer to Question 1

D

Answer to Question 2

PV = 89,000(1.14)-15 = 12,469



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

For a complete list of videos, visit our video library