$1.$ The expected risk of an investment is incorporated into the net present value computation through which of the following?

Multiple Choice

Cash flows at time t

The discount rate

The summation of discounted cash flows over time

Cash flows over the life of the investment

$2.$ The time value of money concept states that a dollar tomorrow is:

Multiple Choice

worth more than a dollar today.

worth less than a dollar today.

equal to a dollar today.

$($cannot be determined$)$

$3.$ Which of the following is computed by discounting free cash flows $($to all investors$)$ by the weighted average cost of capital?

Multiple Choice

Market value of equity

Enterprise value

Market value of debt

Book value of equity

$4.$ Enterprise valuation $($asset valuation$)$ uses which of the following to discount future cash flows.

Multiple Choice

the firm$$s equity cost of capital

the firm$$s debt cost of capital

the overall stock market cost of capital

the firms weighted average cost of capital $($WACC$)$