What does the phrase discounting the future at a high rate imply?

Question:

What does the phrase “discounting the future at a high rate” imply?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Investments An Introduction

ISBN: 978-0324561388

9th Edition

Authors: Herbert B Mayo

See More Books

Question Posted: Jun 26, 2012 05:13 AM

See More Questions

What does the phrase there is no free lunch mean?
What does the phrase bulge bracket mean?
What does the phrase limited liability mean in a corporate context?
Refer to the situation described in P 192. Assume Pastner measures the fair value of all options on January 1, 2021, to be $4.50 per option using a single weighted-average expected life of the...
Robert Evjen was a full-time employee of Boise Cascade Co. At the same time, he was a full-time student at Chemata Community College. He was laid off as part of a general economy move by the...
A project was planned using PERT with three time estimates. The expected completion time of the project was determined to be 40 weeks. The variance of the critical path is 9. (a) What is the...
How can supervisors validate the field work of interviewers?
The adjusted trial balances of Verne Corporation at August 31, 2018, and August 31, 2017, include these amounts (in millions): Verne completed these transactions (in millions) during the year ended...
Real Marketer Profile Neetu Godara I often reflect on my career and think about the journey that has led me to this point. From my early experiences as an Assistant Brand Manager working on major...
EastPoint Toyota, a small dealership, has provided you with the following information with respect to its vehicle inventory for the month of November. The company uses the specific identification...
For a given time period, what happens to the following as the interest rate increases? a) Future value of $1 b) Future value of an annuity c) Present value of $1 d) Present value of an annuity
As is explained in subsequent chapters, increases in interest rates cause the value of assets to decline. Why would you expect this relationship?
Solve each polynomial inequality in Exercises 142 and graph the solution set on a real number line. Express each solution set in interval notation. x2+5x+4>0
Probabilities for all the possible values of a discrete random variable a. may be greater than 1. b. may be negative on some occasions. c. must sum to 1. d. are represented by area underneath the...
The inventory position is defined as a. the amount of inventory needed to meet the demand during the lead time. b. the amount of inventory on hand. c. the amount of inventory on order. d. the total...
If the EOQ assumptions are met, then a. annual stockout cost will be zero. b. total annual holding cost will equal total annual ordering cost. c. average inventory will be one-half the order...
Why are international conventions unequivocal sources of international law? Can nations renege on their treaty obligations? When and why?
The most that a person should pay for perfect information is a. the EVPI. b. the maximum EMV minus the minimum EMV. c. the maximum EOL. d. the maximum EMV.
How does the nervous system communicate electrical and chemical messages from one part to another?
The words without recourse on an indorsement means the indorser is: a. not liable for any problems associated with the instrument. b. not liable if the instrument is dishonored. c. liable personally...
What is the difference between dispatching and scheduling?
Canyon Tours showed the following components of working capital last year: a. What was the change in net working capital during the year? b. If sales were $36,000 and costs were $24,000, what was...
Tubby Toys estimates that its new line of rubber ducks will generate sales of $7 million, operating costs of $4 million, and a depreciation expense of $1 million. If the tax rate is 35%, what is the...
PC Shopping Network may upgrade its modem pool. It last upgraded 2 years ago, when it spent $115 million on equipment with an assumed life of 5 years and an assumed salvage value of $15 million for...
1. How does marketing create value, and how do firms become more value driven? 2. Describe a firm's stakeholders and how they are impacted by conscious marketing.
Beginning inventory 100 units @ $8.00 = $ 800 Purchase # 1 200 units @ $6.00 = 1,200 Purchase # 2 100 units @ $12.00 = 1,200 Total 400 units $3,200 Ending inventory is 150 units. 1. What is cost of...
Sam's Ice Creams, a cottage country favourite in Northern Ontario, has launched a new range of ice creams branded as "Summer Flavours." To capitalize on the cottage and tourism season from May to...

What does the phrase discounting the future at a high rate imply?

Question:

Step by Step Answer:

Discounting the future at a high rate suggests that ...View the full answer

Investments An Introduction

Students also viewed these Accounting questions