Question
10. Answer the Time Value of Money questions below. Show all work! A. A firm will have constant profits of $100,000 per year for the
10. Answer the Time Value of Money questions below. Show all work! A. A firm will have constant profits of $100,000 per year for the next four years, and the interest rate is 6 percent. Assuming these profits are realized at the end of each year, what is the present value of these future profits? B. It is estimated that over 100,000 students will apply to the top 30 M.B.A. programs in the United States this year. Using the concept of net present value and opportunity cost, explain when it is rational for an individual to pursue an M.B.A. degree
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