1. Determine whether a steel company or a retail food chain would have a greater business risk. Provide support for your rationale.
2. The lower a firm’s break-even point, the better for the firm.
True
False
3. What is the present value of $10,000 received
a. 12 years from today when the interest rate is 4% per? year?
b. 20 years from today when the interest rate is 8% per? year?.
c. 66 years from today when the interest rate is 2% per? year?
(round answers to the nearest dollar)