# 2.  If the interest rate is 5%

FratBro23
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Economics
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Question description

2.  If the interest rate is 5%, approximately what is the present value of a \$300,000 expense occurring two years from today?A.\$272,109B.\$310,000C.\$300,000D.\$330,750Suppose a project requires the lease of a crane.  You need the crane for the next 2 years.  Your company wants to pay the lowest present value possible.  The crane company offers you the following options for the lease payments:A.  pay \$40,000 now and \$50,000 in 1 year from nowB.  pay \$110,000 in 2 years from nowC.  pay \$86,000 now3.  If the interest rate is 0%, which option do you choose?c4.  If the interest rate is 5%, which option do you choose?c5.  If the interest rate is 10%, which option do you choose?a6.  If the interest rate is 20%, which option do you choose?

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