首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
You are deciding whether to purchase a used car. The price of the car is $1,400 and you expect the car to last for four years. Y
You are deciding whether to purchase a used car. The price of the car is $1,400 and you expect the car to last for four years. Y
admin
2011-01-15
63
问题
You are deciding whether to purchase a used car. The price of the car is $1,400 and you expect the car to last for four years. You have determined that the value of the flow of services you will receive from the car in each of the four years is $500. The interest rate is 20 percent. (Assuming that all figures are real terms.)
(a)Without discounting future cash flows and benefit streams, is the benefit of buying this car greater than the cost?
(b)When costs and benefits are appropriately valued, what is the net present value of this investment? Should you buy the car?
选项
答案
(a)The stream of benefits for the four years is $500+$500+$500+$500=$2,000. The stream of costs over the four years is $1,400+$100+$100+$100=$1,700. Therefore, the benefits outweigh the costs. (b)The PV of the benefit stream is $500/(1+20%)+$500/(1+20%)2+$500/(1+20%)3+$500/(1+ 20%)4=416.67+347.22+289.35+241.13=$1,294.37. The cost of the car is $1,400. The net present value is negative (1,294.37-1,400=-$105.63), and therefore you should not buy the car.
解析
转载请注明原文地址:https://kaotiyun.com/show/eCYd777K
0
中级(经济学)
原金融专业英语(FECT)
金融英语(FECT)
相关试题推荐
A、CanadianB、AmericanC、personfromathirdcountryB
Ifyouarewritingorstudying,itmakesverymuchdifferencewherethelightcomesfrom.Peoplewhousebooksandpenseveryda
In1826,aFrenchmannamedNiepceneededpicturesforhisbusiness.Buthewasnotagoodartist.Soheinventedaverysimplec
Mr.WongisasmallmanufacturerofbicyclesinHongKong.Hisbusinessincurredthefollowingcostsfortheyearended31Decem
Abudgetwhich,byrecognizingdifferentcostbehaviourisdesignedtochangeasthevolumeofactualoutputchangesis______.
List2factorsthataffectthevalidityofanotherwiseeffectivecontract.
Describetheproceduresoftelegraphictransfer(T/T)accordingtothenumbergiveninthecharter.
Chinawillcontinuetopursuea【26】monetarypolicy,andseekrefinementsintheconductofmonetarypolicybyrelyingon【27】poli
Describethelinkagesamongprices,exchangerates,interestratesandothervariablesaccordingtothenumbersgiveninthecha
Billionsofdollarsworthofnewsecuritiesreachthemarketeachyear.Thetraditional(56)intheprimary,marketsiscalle
随机试题
测验的主要种类有()。
恶性肿瘤的糖代谢过程中,可产生
发生青霉素过敏性休克时,病人最早出现的症状是
(2003)把实心黏土砖、混凝土、加气混凝土3种材料,按导热系统从小到大排列,正确的顺序应该是:
根据《水利水电建设工程验收规程》SL223—2008,需要提前投入使用的单位工程应进行投入使用验收。单位工程投入使用验收由()主持。
下列各项资产和负债中,因账面价值与计税基础不一致形成暂时性差异的有()。
下列主体中,依照我国选举法不列入选民名单的是()。
在偶像级人物的背后,往往有追逐经济利益的资本力量的______,它们利用舆论制造全民的娱乐狂欢,以此牟利。因此,对于追星现象,我们也要保持一分清醒,在狂热追星之前,看一些不同角度不同观点的文章,多一些思考和冷静,就不会______。一旦看清偶像背后的真相,
构成计算机软件的是
Iwasembarrassedwhenthe______testpapermyteacherspokeaboutturnedouttobemine.Ihadforgottentoputmynameonit.
最新回复
(
0
)