16. If you were given the components of current assets and of current liabilities, what ratio(s) could you compute? A) Acid test or quick ratio B) Average collection period C) Current ratio D) Both A and C E) All of the above 17. The time value of money is created by A) the existence of profitable investment alternatives and interest rates. B) the fact that the passing of time increases the value of money C) the elimination of the opportunity cost as a consideration. D) the fact that the value of saving money for tomorrow could be more or less than spending it today 18. An investor will invest $1,000 now and expect to receive S10 for each of the next 10 years plus $1,000 at the end of the 10th year. Her cash flow at time period 0 is A) $1,000. B)-S1,000 C) S-990. D) $1,010. 19. Should you prefer to receive $100,000 right now or $10,000 at the end of each of the next 12 years? A) $100,000 now B) S10,000 at the end of each of the next 12 years. C) The answer depends on the time value of money. D) Either alternative is equally valuable. 20. If you have S20.000 in an account earning 8% annually. what constant amount could you withdraw each year and have nothing remaining at the end of five years? A) $3,525.62 B) S5,008.76 C) $3,408.88 D) $2,465.78 21. Ordinary annuities assume that cash flows occur A) at the beginning of a period. B) at the end of a period. C) annually D) Both B and C