Posted by **Dina** on Sunday, April 11, 2010 at 2:58pm.

Multiple choice

1. If the friend offers to pay you $1 five years from today, the net present value will:

A)be higher than $1.

B)depend upon the interest rate offered.

C)be equal to zero since you don't have the dollar.

D)not be important in understanding the time value of money.

2.William installs custom sound systems in cars. If he installs seven systems per day, his total costs are $300. If he installs eight systems per day, his total costs are $400. William will install only eight sound systems per day if the eighth customer is willing to pay at least:

A) $300.

B) $400.

C) $100.

D) $50.

## Answer This Question

## Related Questions

- Finance - Investment X offers to pay you $5,500 per year for nine years, whereas...
- Accounting. Present Value. - Suppose you want to have $5,000 saved at the end ...
- economics - Determine the highest purchase price that a company could afford to ...
- FIN200- FV, PV and Annuity Due CP - I just want to know if anyone can help me in...
- Finance - Investment X offers to pay you $6,000 per year for nine years, whereas...
- Finance - The Carter Company's bond mature in 10 years have a par value of 1,000...
- Finance - You are serving on a jury. A plaintiff is suing the city for injuries ...
- Accounting - (Present Value) What is the present value of an annuity that pays $...
- Finance - Calculating Interest Rate. Find the interest rate implied by the ...
- finance, please help - 1. Calculate the present value of an investment given the...

More Related Questions