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Author Question: If the present value of all future profit is positive, then (Read 56 times)

asd123

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on: Mar 14, 2021

Question 1

If a firm can borrow money at 0% interest, then
◦ the lender is irrational.
◦ its business investment is guaranteed to be profitable.
◦ present value and future value are equal.
◦ interest payments are deferred.

Question 2

If the present value of all future profit is positive, then
◦ the firm should remain operating, even if it earns negative profit in the short run.
◦ the firm should shut down if it is earning a negative profit in the short run.
◦ the firm should shut down if it cannot cover its fixed costs in the short run.
◦ None of these.
Managerial Economics and Strategy ¦ Perloff, Brander ¦ 3rd Edition
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Marked as best answer by asd123 on Mar 14, 2021

mariahkathleeen

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Reply #1 on: Mar 14, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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asd123

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Reply 2 on: Mar 14, 2021
Great answer, keep it coming :)

bigcheese9

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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