Examlex

Solved

What Is the Present Value of the Following Investment Opportunity

question 183

Multiple Choice

What is the present value of the following investment opportunity. You invest $10,000 now and another $10,000 in one year. In return you receive $23,000 in two years. Other opportunities available with similar risk yield about 12%.


Definitions:

National Debt

The cumulative sum of funds that a nation's government owes, often acquired by issuing bonds.

GDP

The GDP is the comprehensive market valuation of all end products and services made within a nation's borders during a certain period.

Federal Budget Deficits

The financial situation occurring when a government spends more money than it receives in income, typically measured over a fiscal year.

Federal Budget Deficit

The shortfall when the government's expenditures exceed its revenues in a fiscal year.

Related Questions