xm1a-w05 - Econ 102 Exam I ECON 102/100 February 10, 2005...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 102 Lecture 100 Exam I Form 1 ECON 102/100 February 10, 2005 Answers Part I: Multiple Choice: (26 questions, 3 pts each = 78 pts) Pick the best answer among the given choices. 1. e 2. b 3. a 4. e 5. c 6. b 7. d 8. d 9. d 10. c 11. d 12. a 13. d 14. a 15. c 16. e 17. a 18. b 19. b 20. b 21. d 22. c 23. a 24. a 25. c 26. b
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Part II: Short Answer: (20pts) Write a solution to each of the following problems. 1. Kristen gets a two year job offer from UGG manufacturing company in Australia. Her perspective employer offers the following two salary options: Option #1: $5,000 paid at the end of year 1 and $10,000 paid at the end of year 2 Option #2: $7,500 paid at the end of year 1 and $7,300 paid at the end of year 2 a) Kristen is not very good at math, so she hires you to consult with her on which option she should choose. She tells you that the global interest rate is set at 10%. Which option do you recommend? Defend your answer by showing all of your work. (4 points) In order to answer this question, one needs to calculate the Net Present Value (NPV)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

xm1a-w05 - Econ 102 Exam I ECON 102/100 February 10, 2005...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online