Question
An investment will pay you nothing at the end of 1st year, $100 at the end of each of the 2nd and 3rd years, $200
An investment will pay you nothing at the end of 1st year, $100 at the end of each of the 2nd and 3rd years, $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8% annually, what is its future value of all cash flows that you received from your investment?
| $1,466.23 |
| $1,319.30 |
| $1,330.18 |
| $966.23 |
Which of the following statements is true
| The exchange rate risk decreases the cost of capital. |
| International trade surplus positively affect the cost of capital. |
| Economic recession negatively affect the cost of capital. |
| Higher economic, political, social, and environmental risk decreases the cost of capital. |
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