SMG FE 101 Lecture Notes - Lecture 2: Agganis Arena, Net Present Value
9 Nov 2018
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Mini practice exam #2 tvm: marcela"s bottles-2-go (mb2g) is an outdoor outfitter specializing in merchandise with college logos. Mb2g has agreed to sell sustainability@bu 10,000 water bottles in exchange for a ,000 payment today and an additional ,000 one year from today. The water bottles cost mb2g each to manufacture. Assuming an annual interest rate of 4%, the net benefit today for mb2g is closest to: ,077, ,000, ,020, ,000, north woods paper company owns 600 acres of forest. The company plans to cut 100 acres of trees and sell them to a lumber yard. If it cuts the trees today, they will be worth. If the trees are allowed to grow for a further year, they will be worth 30% more, however, there will be additional costs of ,000 incurred one year from today. Why: you are considering investing in a new gold mine in south africa.
