11. The current value of an investment is generally future cash flows a. higher than b. lower than c. equal to the present value of all expected 12. Paul Springer plans to save for a down payment for a house in 10 years. He will be able to invest S12,000 today in an account that will pay him an annual interest rate of 5.5 % on a monthly basis. How much will he have at the end of 10 years? a. $12,640 b. $20,773 c. $24,859 d. $23,080 13. An increase in days sales outstanding positively impacts cash flows True a. b. False 14. Jane Thorpe has been offered a seven-year bond issued by Barone, Inc., for a price of $943.22. The bond has a coupon rate of 9% and pays the coupon semiannually. Similar bonds in the market have a yield to maturity of 10% today. Should she buy the bonds at the offered price? a. Yes, it is underpriced b. No, it is overpriced 15. In terms of time value of money, future value measures: the value of an investment in today's terms b. the value of the investment after discounting the interest the value of the investment after compounding the incremental interest to be received a. earn for all periods be to C. ein the future 16. Stamp, Inc. has an operating cycle of 81 days and takes 47 days to collect on its receivables. What is its level of inventory if the firm's cost of goods sold is $3 12,455? Round your final answer to the nearest dollar. $9,190 b. $14,685 c. $29,105 d. $69,339 SEL12 a. od i bete 17. The primary goal of a good CEO is to focus maximizing profit w. True a. b. False