An investment offers the following year-end cash flows: end of year cash flow 1 0 2 $20,000 3 $30,000 4 $15,000 5 -$2,000 a. how much would you be willing to pay for this investment today if your opportunity cost was 10%? (5 points) b. using a 10 percent discount rate, convert this series of irregular cash flows to an equivalent (in present value terms) 5-year annuity. (5 points)

On january 1, 2018, johnstone leased an office building. terms of the lease require johnstone to make 15 annual lease payments of $134,000 beginning on january 1, 2018. a 10% interest rate is implicit in the lease agreement. at what amount should johnstone record the lease liability on january 1, 2018, before any lease payments are made?

Match each feature with the savings account type

Suppose farmer lane grows and sells cotton in a perfectly competitive industry. the market price of cotton is $1.64 per kilogram, and his marginal cost of production is $1.44 per kilogram, which increases with output. assume farmer lane is currently earning a profit. can farmer lane do anything to increase his profit in the short run? farmer lane: a. cannot do anything to increase his profit. b. may or may not be able to increase his profit. c. can increase his profit by raising his price. d. can increase his profit by producing more output. e. can increase his profit by shutting down.