Which of the following sets of preferences satisfies the property of transitivity?
a. Cookies are preferred to pie. Pie is preferred to brownies. Cookies are preferred to brownies.
b. Cookies are preferred to pie. Brownies are preferred to pie. Pie is preferred to cookies.
c. Cookies are preferred to ice cream. Ice cream is preferred to brownies. Brownies are preferred to cookies.
d. Cookies are preferred to pie. Ice cream is preferred to cookies. Pie is preferred to ice cream.
a
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The M1 measure of money includes
A) small denomination time deposits. B) traveler's checks. C) money market deposit accounts. D) money market mutual fund shares.
If the interest rate is 25%, but cash flows change such that the investment renders a cash flow of $500 in year 1 and $800 in year 2 instead of year 3, would the investment take place?
a. Yes since NPV>0 b. No since NPV<0 c. Yes since the present value of the cash flows is greater than zero d. No since the present value of the cash flows is lesser than zero