A risk-free rate can be measured by

A) the rate of inflation.
B) the rate on corporate bonds.
C) the Federal Reserve's discount rate.
D) a rate of a Treasury security.

D

Economics

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Refer to Figure 3-5. At a price of $0

A) there is a shortage of 8 units. B) there is a shortage of 0 units. C) there is a surplus of 8 units. D) there is a surplus of 0 units.

Economics

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?

Economics