Suppose That the Present Value of Receiving a Guaranteed R450

question 54

Multiple Choice

Suppose that the present value of receiving a guaranteed R450 in two years is R385.80.The opportunity rate of return on similar risk investments is 8 percent.According to this information, all else equal, which of the following statements is correct?

• A) It always would be preferable to wait two years to receive the R450 because this value is greater than the present value.
• B) Risk averse investors always would prefer to take the R385.80 today because it is a guaranteed amount whereas there is uncertainty as to whether the future amount will be paid.
• C) No investor should be willing to pay more than R385.80 for such an investment.
• D) It is apparent the present value was computed incorrectly because the present value of a future amount always should be greater than the future value.
• E) None of the above is a correct answer.

Investigate the contribution and treatment of African American soldiers in the Union army.

Understand the anatomy and functions of male genital organs.

Recognize and respond appropriately to normal and abnormal findings during a genital examination.

Explain the physiological changes in male genitalia across different life stages.

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Definitions:

Insulin Levels

The concentration of insulin, a hormone produced by the pancreas that regulates blood sugar levels, in the bloodstream.

Willingness Eat

An individual's readiness or openness to consume specific foods or types of food, which can be influenced by cultural, psychological, and personal preferences.

Nausea

A sensation of unease and discomfort in the upper stomach with an involuntary urge to vomit.

Weight Gain

refers to an increase in body weight, which can result from various factors including increased muscle mass, fat deposits, or fluid retention.