You have a sub-contracting job with a local manufacturing firm. your agreement calls for 5 annual end-of-year payments of $50,000 over the next five years, with the first payment being made a year from today. at a discount rate of 12%, what is the value today of this payment stream?

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars