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.

View Complete Question

Related Questions in Microeconomics

Q : Synonym of the term utility The nearest

The nearest to being a synonym of the term “utility” is: (1) Universal.. (2) Consumption. (3) Satisfaction. (4) Multi-faceted. (5) Marginalism Can someone help me in getting through this problem.

Q : Are you being charged too much for

This exercise inspects the higher prices charged in UK for music downloads as compared to the rest of Europe.

Q : Loans from financial institutions Can

Can someone please help me in finding out the accurate answer from the following question. The biggest percentage of the corporate financing comes from: (i) Issuing general stock. (ii) Loans from financial institutions. (iii) Issuing the corporate bonds. (iv) Dividend

Q : Excessively high production costs to

The merely fast food restaurant conveniently located close to a fast-growing suburb may be rather profitable despite sloppy management and poor quality control. There market power can enable several firms along with excessively high production

Q : Experience decreasing costs industry If

If one industry’s development stimulates development in support and complementary industries, it permits firms within the industry to: (i) move up their rising long run average costs curves. (ii) sell their products for higher prices. (iii) focus old technologie

Q : Problem on market demand for housing

All as well equivalent, population growth would tend to rise the: (i) Demand for housing for each and every family. (ii) Supply of natural resources. (iii) Shares of family budgets spend on luxuries. (iv) Market demand for housing.

Q : Define Marginal rate of transformation

Marginal rate of transformation: This is the amount of one good which should be given to generate one additional unit of a second good. This is also termed as marginal opportunity cost.

Q : Illustrate the meaning of deflationary

Meaning of deflationary Gap: This is the gap among excess of aggregate supply over the aggregate demand at complete employment level.

Q : Zxcvbnm

dssfghjkgfdsaSDFGHJKHGFDSASDFGHJK SDFGHJKLHGFDSADFGHJKHGFDSFG DFGHJKHGFDSFGHJHGSDFGHJ

Q : Maximizing firm profit conflicts with

Whenever maximizing the firm profit conflicts with self-interests of business managers, this can lead to the: (i) Principal-agent problems. (ii) Negative accounting gain. (iii) Maximization of the revenues. (iv) Negative economic gain.

Discover Q & A

Leading Solution Library

Avail More Than 1426180 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1926980
Asked

3,689

Active Tutors

1426180

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment