--%>
Assignment Help - homework help

Problem regarding to present value and rates of return

When the price of a financial asset is of $2,000 and the interest rate is 10 percent, in that case investment is not reasonable for: (1) a perpetuity paying $200 annually. (2) an income stream paying $1000, $800, and $600, respectively, on the ends of all of the next three years. (3) a bond paying $2,420 two years hence. (4) an asset worth $2,600 three years hence. (5) a bond paying $4,000 in six years.

Hey friends please give your opinion for the problem of Economics that is given above.

   Related Questions in Microeconomics

  • Q : Distribution and production for social

    Society as entire benefits most when the distribution and production of penicillin corresponds to: (a) point a. (b) point b. (c) point f. (d) point d. (e) point g.

    Q : Imposing the price floors A surplus of

    A surplus of papayas would involve when: (1) government set a price ceiling of P1. (2) growers expected prices to soar. (3) hurricanes vanished all Central American papaya plantations. (4) government imposed a price floor of P2. (5) seller's supp

    		•
  • Q : Poverty and Human Capital Enabling

    Enabling labor to move out of low-wage occupations by enhancing their education, skills, training and mobility, which will tend to: (w) lower the wages of those who leave the low wage occupation. (x) raise the wages of those who remain in the low wage

    		•
  • Q : Illustration of Substitution Effect

    Sally is very rich that money hardly matters to her, although when the price of JIF chunky peanut butter doubled Sally switched to Peter Pan chunky peanut butter. This alters is an example of the: (1) Income effect. (2) Payback effect. (3) Substitution effect. (4) Pri

    		•
  • Q : Asset demand Select the right answer of

    Select the right answer of the question. The asset demand for money: A) is unrelated to both the interest rate and the level of GDP. B) varies inversely with the rate of interest. C) varies inversely with the level of real GDP. D) varies directly with the level of nom

    		•
  • Q : Classification of Surveys as

    Surveys can be classified as probabilistic sampling: • Simple random sampling: If you have a relatively small, self-contained, or clearly stated population, suc

    		•
  • Q : Entrepreneurs explicit costs The

    The entrepreneur’s explicit costs would comprise: (1) Forgone interest on owner’s savings. (2) Value of entrepreneur’s labor. (3) Interest payments on the business loans. (4) Lost salaries from the entrepreneur’s preceding job.

    		•
  • Q : Economic project Hello, Would you

    Hello, Would you please find a project in managerial economic in the attachment. Please tell me in which price you will be solve it and when you complete it? NOTE: I attach tow files (one is the project and another as the sample for it) I choose Starbucks company for the project. A Special N

    		•
  • Q : Price elasticity of supply of commodity

    Determine the price elasticity of supply of a commodity whose straight line supply curve passes via the origin forming an angle of 45 degree/75 degree? Answer: Unit

    		•
  • Q : Determine supply curve as perfectly

    Suppose that all these given demonstrated curves in below are infinitely long straight lines. There supply curve that is perfectly price-inelastic is: (i) supply curve S1. (ii) supply curve S2. (iii) supply curve S3. (

    		•