Eileen is a risk neutral consultant, doing work for acme, inc. The company offers her a choice of two compensation plans. Under plan a she receives $25,000 today. Under plan b she receives $10,000 today, $10,000 one year from today, and 10,000 two years from today. She will be indifferent between these plans if her rate of time discount equals __ percent. If her rate of time discount is less than this amount she will opt for plan .

Question

02-08-2022
Business

Answered

Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

Eileen is a risk neutral consultant, doing work for acme, inc. The company offers her a choice of two compensation plans. Under plan a she receives $25,000 today. Under plan b she receives $10,000 today, $10,000 one year from today, and 10,000 two years from today. She will be indifferent between these plans if her rate of time discount equals __ percent. If her rate of time discount is less than this amount she will opt for plan .

Sagot :

Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.

how does muscle fatigue help maintain homeostasis?

During a bike challenge, riders have to collect various colored ribbons. Each 1/2 mile they collect a red ribbon, each 1/8 mile they collect a green ribbon, and

The employees from maintenance go for coffee together every day at 9 AM. On Monday, Hector paid $5.45 for three cartons of milk, four cups of coffee and seven

A _______________________ parking space is set at an angle of 90 degrees to the curb. A. perpendicular B. parallel C. angled D. small

Which people established the worlds first trading empire??

The Lees have 3 children. The oldest is twice as old as the youngest. The middle is 5 years older than the youngest. If the sum of the age is 57, how old is eac

In 1950, there were 40.3 million cars registered in the United States. In 1990, there were 133.7 million cars registered in the United States. What was the perc

name and describe the cell structure that helps prevent damage to certain cells when they are subjected to high osmotic pressure

If your vehicle has an EFI system, A. press down on the accelerator before starting your engine. B. press down on the accelerator while starting your engine

Which of the following is a function of only the House of Representatives,not the Senate? A. Initiating legislation B. proposing tax bills C. Approving treat

Tutorconsortium361 Tutorconsortium361 · Answer 1 · 2022-08-07T09:53:19-04:00

She will be indifferent between these plans if her rate of time discount is equals 21 percent. If her rate of time discount is less than this amount she will opt for a plan B.

What is discount rate?

The bank rate, sometimes known as the discount rate in American English, is the interest rate charged by a central bank on its loans and advances to commercial banks.

In a discounted cash flow (DCF) analysis, the discount rate is the interest rate used to calculate the present value of future cash flows. This helps establish whether the future cash flows from a project or investment will be worth more than the initial capital outlay required to support the project or investment.

The discount rate is an essential measure of an economy's credit situation.

To know more about discount rate follow the link:

https://brainly.com/question/7459025

#SPJ4

Sagot :

What is discount rate?

Other Questions