11. The discount rate chosen in short-term financial decision making should always reflect:

the fluctuations of the company's past capital investments the company's opportunity cost the current overnight investment rate the current long-term borrowing rate

Question 12.12. With more frequent than annual compounding, the effective annual rate is ______________ than the nominal rate, due to the effect of ______________.

lower, rounding differences lower, not earning "interest on interest" higher, rounding differences higher, earning "interest on interest"

Question 13.13. Determining the Net Present Value (NPV) of a given course of action typically involves all of these steps EXCEPT:

determining the relevant cash flows determining the timing of the cash flows determining the probability of each cash flow determining the appropriate discount rate discounting the cash flows

Question 14.14. It is most commonly assumed that the manager