The present value model of investment states that an asset's current price should be equal to the:
A. Sum of the present values of all of its future payments or earnings
B. Sum of all of its future payments or earnings times the number of years of its life
C. Life of the asset times the present values of all of its future payments or earnings
D. Present values of all of its future payments or earnings divided by its life in years
A. Sum of the present values of all of its future payments or earnings
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Which one of the following would not increase recycling rates?
a. Technological lock-in b. A tax on virgin resources c. Pay-by-the-bag garbage programs d. Government procurement of recycled materials e. Increased royalty payments for extraction of resources
Equilibrium real income is more stable in the face of aggregate autonomous expenditure variability under
A) a floating exchange rate. B) a pegged exchange rate. C) a fixed exchange rate. D) perfect capital mobility systems.