Which of the following has the lowest present value?
A) $1,000 received in 3 years if the current interest rate is 4%
B) $1,500 received in 5 years if the current interest rate is 6%
C) $2,000 received in 6 years if the current interest rate is 11%
D) $3,000 received in 10 years if the current interest rate is 13%
D
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The Proclamation of 1763 and the Quebec Act of 1774 benefited existing farmers with large land holdings because these laws led to
a. decreased farming competition. b. falling land prices. c. lower taxes on farm land. d. increased supplies of western farm land. e. All of the above.
Franco's Frozen Ice produces Italian flavored ice that is sold in the freezer section of grocery stores. Currently, Franco's does not have a fixed advertising budget and advertises in grocery stores' weekly advertising flyers and on the radio. A unit of advertising in the weekly flyers costs $2,000 and a unit of advertising on the radio costs $6,000. At their current advertising levels, the
marginal benefit of advertising in the flyer is $1,500 and the marginal benefit of advertising on the radio is $5,000. Which of the following is true? A) Franco's is currently maximizing its profits from advertising. B) To maximize profits, Franco's should increase the amount of advertising in flyers and on the radio. C) To maximize profits, Franco's should decrease the amount of advertising in flyers and on the radio. D) To maximize profits, Franco's should increase the amount of advertising in flyers, but not change the amount of advertising on the radio.