What cost to invest in either option is the same day

Assignment Help Econometrics
Reference no: EM13212417

You are comparing two investment options. The cost to invest in either option is the same today. Both options will provide you with $20,000 of income. Option A pays five annual payments starting with $8,000 the first year followed by four annual payments of $3,000 each. Option B pays five annual payments of $4,000 each. Which one of the following statements is correct given these two investment options?

Reference no: EM13212417

Questions Cloud

Explain what is the concentration of a solution made : What is the concentration of a solution made from 15ml of 2.0M HBrO, 20.0ml of H20, and 9.7g HBrO (mm=97g/mol)
Explain what is the concentration of lead : To a second 25.00 mL part, 10.00 mg of lead was added and extracted into a second 10.00 mL portion of the same organic solvent. This solution gave A = 0.525. What was the concentration of lead, in mg/mL, in the original sample?
How the doctors are more productive than nurses : A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a y..
Compute the ionic strength solution of acetic buffer : Calculate the ionic strength of 100mM solution of Mg3(PO4)2 in acetic buffer
What cost to invest in either option is the same day : The cost to invest in either option is the same today. Both options will provide you with $20,000 of income. Option A pays five annual payments starting with $8,000 the first year followed by four annual payments of $3,000 each.
Explain which hplc mode you will choose and why : separate a mixture of alkane. which HPLC mode you will choose and why? ( Consider Normal-phase, ion- exchange, and size-exclusion).
How a clinic uses doctors and nurses optimally : A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a year, while the last nurse hired treated 1,000 extra patients in a y..
Compute the resolution between the compunds : efficiency is 2000 theoretical plates, Void volume is 1mL. Calculate the resolution between these compunds.
How learning economies differ from economies of scale : Learning economies involve cumulative production over time and the economies of scale involves rate of production per period. Learning economies involve rising average costs and economies of scale involve falling average costs as a result of highe..

Reviews

Write a Review

Econometrics Questions & Answers

  Does the production function exhibits increasing returns

A farmer uses M units of machinery and L hours of labor to produce C tons of corn. A) Suppose the production function is C = L(0.5) x M(0.75), does the production function exhibits increasing returns to scale, decreasing returns to scale or consta..

  Compute the inflation rate using the gdp deflator

The following data is available for an economy. Compute the inflation rate (measured from year 1 to year 2) using the GDP deflator and taking as base first year 1 and then year 2 Price of Peanuts in Year 1 $1.60 Quantity of Peanuts in Year 1 275 Pr..

  How many of each will jane purchase

In each case, draw a budget line that shows her available choices, and indicate her best choice by adding indifference curves. Assume that Jane only cares about the number of peanuts, and not about the size of the bag.

  What if the usury limit is raised to 7 percent per year

If the government imposes a usury law and says that car loans cannot exceed 3 percent per year, how big will the monthly shortage (or excess demand) for car loans be What if the usury limit is raised to 7 percent per year

  When the same efforts must be made to uncork

Most restaurant customers tip according to a percentage rule between 15 and 25 percent of the bill. Diners who have dinner and a $20 bottle of wine usually pay the same percentage of the bottle price as diners who order a $100 bottle.

  What is the economy''s mpc

Suppose that disposable income consumption Andy saving in some country are$200 billion, $150 billion and $50 billion respectively, next assume that disposable income increase by $20 billion, consumption rises by $18 billion and saving goes up by $..

  What life of the insulated tank has the lowest euac

The Clap Chemical Company needs a large insulated stainless steel tank to expand its plant. Clap has located such a tank at a recently closed brewery. The brewery has offered to sell the tank for $15,000 delivered.

  By how much will the money supply change

The Federal Reserve has just purchased $100 million in Treasury bills from commercial banks. b. If the public holds a fixed amount of currency (so that all loans create an equal amount of deposits in the banking system), the minimum reserve ratio ..

  Calculate the price index for two thousand

price information for a typical market basket of goods purchased by consumers and assume that 2000 is the base year:1.Calculate the price index for 2000. 2.Calculate the price index for 2001. 3.Calculate the price index for 2002. 4.Calculate the pric..

  Calculate the number of workers to be laid off

For both sets of calculations, compare the firm's output price and the calculated average variable cost and average total cost. Should the firm shutdown immediately when the total fixed cost equals $1,000,000 Should the firm shut down immediately ..

  What would you expect to be the return to stocks

Suppose that the CAPM is a good model of risk in the stock market. Suppose also that the average excess return on stocks is 10% and that the risk free interest rate is 1%. What would you expect to be the return to stocks with each of the following..

  Seasonal economic factors and cyclical economic factors

The United States is currently recovering from its bad recession in over twenty-five years. Applying the resource provided in this and earlier modules of course describe what factors or activities you think helped cause this economic condition.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd