A risk-free project requires an upfront cost of $1 million and generates annual cash flow of $90,000 in perpetuity. Interest rates will either be 10% or 5% in one year and remain there forever with 90% chance of dropping to 5%. The one-year risk-free rate interest rate is 8% and today's rate on a risk-free perpetual bond is 5.4%. The rate on an equivalent perpetual bond that is repayable at any time is 9%. Should you invest in this project today, or wait and see if rates drop and then invest
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Business, 21.06.2019 21:00
Consider a small island country whose only industry is weaving. the following table shows information about the small economy in two different years. complete the table by calculating physical capital per worker as well as labor productivity. hint: recall that productivity is defined as the amount of goods and services a worker can produce per hour. in this problem, measure productivity as the quantity of goods per hour of labor. year physical capital labor force physical capital per worker labor hours output labor productivity (looms) (workers) (looms) (hours) (garments) (garments per hour of labor) 2024 160 40 1,800 14,400 2025 180 60 3,900 23,400
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Business, 21.06.2019 23:30
Using the exxon data as an example what would be the market capitalization of penny's pickles if each share is selling for $175.35?
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Business, 22.06.2019 05:30
The hartman family is saving $400 monthly for ronald's college education. the family anticipates they will need to contribute $20,000 towards his first year of college, which is in 4 years .which best explain s whether the family will have enough money in 4 years ?
Answers: 1
Business, 22.06.2019 11:00
Using a cps-sample of 7,440 individuals, you estimate the following regression: = 20.91 - 2.61 x female where female is a binary variable that takes on the value of 1 for females and is 0 otherwise. the standard error on the coefficient on female is 0.25. the 95% confidence interval for the gender wage gap, or the amount that females earn less, is: a) [-3.10, -2.12] b) [18.30, 23.52] c) [-3.02, -2.20] d) [-1.96, -1.64]
Answers: 3
A risk-free project requires an upfront cost of $1 million and generates annual cash flow of $90,000...
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