By offering a menu of policies with different premiums and deductibles, insurance companies can their customers; for example, a low-risk customer will often buy insurance with a lower but a higher than a high-risk customer.
a. signal; deductible; premium
b. signal; premium; deductible
c. screen; deductible; premium
d. screen; premium; deductible
suppose you are asked to evaluate a project in which you will receive $1,000 one year from now, receive $2,000 two years from now, and incur costs of $400 now. what is the net present value of this project if the interest rate is 10%?
a. $2,327.27
b. $2,561.98
c. $2,161.98
d. $2,600