O ABS18B00094Y_FIN201_MSE A. MANGA (Compatibility Mode] - Word (Product Activation Failed)
RENCES MAILINGS REVIEW VIEW
Аавьсаг Аавьсаl AaBbc Аавьсс АаВЬС Аавьсаг Аав давс
1 No Spac. Heading 1 Heading 2 Heading 3 Heading 4 Title Subtit
1 Normal
Paragraph
Styles
If cash flows were received on a continuous basis, the present-value payback period would be 8years
+ ($657/$2,332.177) years = Syears + 0.28years = 8.28years. In conclusion, the nominal payback
period is shorter than the cumulative payback period
3c) If we are to use the monetary approach to exchange rate determination, what will be the predicted
effect on the exchange rate of domestic currency if domestic real income increases?
According to this approach, the demand for money depends upon the level of real income, the

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.