Economics-Cost-Benefit Analysis-Questions-421
Category: True, Posted on: 8/4/2016 11:53:37 PM


What is the present value of a firm with a five-year life span that earns the following stream of expected profit? (Treat all profits as being received at year-end.) Use a risk-adjusted discount rate of 12 percent.

Year Expected Profit

1 $10,000

2 20,000

3 50,000

4 75,000

5 50,000

Add a Comment
Your Comment:
Enter Captcha Code :
   Submit Comment Now

View Comments (0)