Solved: What is better choice if the discount rate is twelve percent, Finance Basics

+44 141 628 6080
[email protected]

What is better choice if the discount rate is twelve percent

Sharon Smith will receive $1 million in 50 years. The discount rate is 10%. As an alternative, she can receive $5,000 today.

a. Based on the financial information of the 10% discount rate, should she wait for the $1 million? Why?

b. If the discount rate is 12% what is her better choice?

Solution Preview :

Prepared by a verified Expert

Finance Basics: What is better choice if the discount rate is twelve percent

Reference No:- TGS0677069

Now Priced at $5 (50% Discount)

Recommended (97%)

Rated (4.9/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Value of emotional intelligence

What value does "Emotional Intelligence" (EQ) have in the workplace? How does EQ connect to Interdisciplinary Studies?

Q : Caculate breakeven price from given information

Caculate the breakeven price from the following information. quantity of service - $3000. fixed costs - $45,000.

Q : Estimating the project npv

Tuttle Enterprises is considering a project that has the following cash flow and required return data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected. Required Return: 11.00%

Q : Role in improving patient safety and quality of care

Patient safety is one of health care's most important issues. Nurses play a vital role in improving patient safety and quality of care. Evidence-based practice is the key to finding and implementing the best strategies and interventions to improve

Q : What is better choice if the discount rate is twelve percent

Based on the financial information of the 10% discount rate, should she wait for the $1 million? Why? If the discount rate is 12% what is her better choice?

Q : Perspectives either deontology or utilitarianism

Please choose ONE of the two perspectives (either Deontology or Utilitarianism) and use it to analyze the following case study.

Q : News article related to current events

Choose a news article related to current events. The article can be from any recognized newspaper, magazine, or website that covers current events.

Q : What is yield to maturity and price three years from today

Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? What is its yield to maturity?

Q : What is the wacc for a companys

What is the WACC for a companys with after tax cost of equity, preffered, debt equal to ( 16%, 9%, 5%) if equity makes up 30% and debt makes up 5% of the companys capital structure.

1925280

Questions
Asked

3,689

Active Tutors

1460178

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Solution Preview :

Prepared by a verified Expert

Finance Basics: What is better choice if the discount rate is twelve percent

Reference No:- TGS0677069

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Value of emotional intelligence

Q : Caculate breakeven price from given information

Q : Estimating the project npv

Q : Role in improving patient safety and quality of care

Q : What is better choice if the discount rate is twelve percent

Q : Perspectives either deontology or utilitarianism

Q : News article related to current events

Q : What is yield to maturity and price three years from today

Q : What is the wacc for a companys

Teaching an adult client with type 1 diabetes mellitus

Outcome of the pregnancy of an adolescent client

Teaching regarding the use of oral contraceptives

Problem concerning antibody screening test

Client has suffered a head injury

Patient with advanced cancer has several morphine orders

Client undergoes a modified radical mastectomy

Solution Preview :

Prepared by a verified Expert

Finance Basics: What is better choice if the discount rate is twelve percent

Reference No:- TGS0677069

Recent Questions Asked Finance Basics

Q : Value of emotional intelligence

Q : Caculate breakeven price from given information

Q : Estimating the project npv

Q : Role in improving patient safety and quality of care

Q : What is better choice if the discount rate is twelve percent

Q : Perspectives either deontology or utilitarianism

Q : News article related to current events

Q : What is yield to maturity and price three years from today

Q : What is the wacc for a companys

Asked Questions