Solutions to Chapter 1
A one in five chance of success is acceptable if the payoff conditional on finding an oil field is ten times the costs of exploration. ... The monthly payment is based on a $100,000 loan: PMT ( annuity factor(1%, 360) = 100,000 ( PMT = $1,028.61. ... In early 2002, the Dow was more than three times its 1990 level. ... ................
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