1. What is the TERM Used to Describe the "Time Value of Money"

2. Which One is the most Valuable Investment option? Assume Annual Compounding at an interest rate of 6%?

a. They are All the Same

b. $20,000 in 9 years

c. $10,000 Today

d. $40,000 in 18 years

3. What is the Term used for a Stream of Equal Periodic Cash Flows.

4. Which One is False?

a. Most Capital Projects have little Risk to an Organization

b. The Net Present Value and the Internal Rate of Return Investment Evaluation Methods always Consider the Time Value of Money in the Evaluation Process.

c. Most Capital Projects Become Sunk Costs Quickly.

d. The Cash Payback Period and the Accounting Annual Rate of Return Investment Evaluation Methods Do Not consider the Time Value of Money in the Evaluation Process.

5. Which One is True?

a. Capital Projects usually have Low Costs and Short Lives

b. Compounded Interest is a series of Identical Cash Flows

c. An Annuity is the process of computing interest on interest previously earned

d. A Net present Value Calculation will consider the Time Value of Money