1. Present value calculations assume that an investor always prefers an investment's present value to its future cash flows.

True

False

2. The opportunity cost of using a resource in some way, is the amount the resource could earn if used in an alternative way.

True

False

3. The present value of an investment will always be larger than its expected future value when interest is compounded.

True

False

4. At an interest rate of 0%, $1.00 received in 10 years is equivalent to $1.00 received in 5 years.

True

False

5. The present value of some expected future sum increases as the interest rate increases.

True

False