BLOCK 23
Arcangel, Racquel
Benitez, Christine Joy
Bungay, Allysa Denn
Crisostomo, Leslie
Dayag, Ronald
Ilumin, Marixi
Resuello, Michaela
Tamayo, Kyla Shane
ANSWERS:
11. PVFirm=income x [(1+i)÷(i-g)]
300,000=11,000×[(1.09)÷(.09-g)]
g=.05 or 5%
*It seems reasonable because interest rate (9%) is greater than growth rate (5%).
12. I think I should purchase the energy-efficient model of refrigerator which will save $45 of electricity
costs at the end of each next five years because it is suited for the given limited opportunity cost of 6%.
