1,Which of the following statements are True about the future value of cash flows today?

I. For a given interest rate, the shorter the time period, the higher the Future Value

II. For a given time period, the higher the interest rate, the higher the Future Value

Question 1 options:

	Only I is True
	Only II is True
	Both are True
	Neither are True
	Cannot make a determination based on the information given

Question 2 (1 point)

If the yield to maturity is more than the coupon rate, the bond:

Question 2 options:

	cannot be determined
	will be valued at par
	will be valued greater than par
	will be valued less than par

Question 3 (0.5 points)

Which of the following characteristics relate to a sole proprietorship?

I. Limited liability

II. Income once taxed as personal income

III. Inability to bring in additional partners

IV. Limited life of the firm

Question 3 options:

	I, II, III and IV
	II and III
	II, III and IV
	I, II and IV
	I Only

Question 4 (1 point)

After graduation from MSU, you get a great job and decide that you can pay $203.24 per month extra on your student loan. The standard monthly payment is 302.99 and you still have a balance of $50,000 and 20 years of monthly payments remaining. The annual interest rate on the loan is 4% How many years early will you be able to pay off the loan?

Question 4 options:

	9.9
	120
	121
	10

Question 5 (1 point)

You are given the balance sheets for year 2098 and 2099. When you construct the firm's cashflow statement for 2099, in the part of investing activities, you calculate the additions to property, plant and equipment (the amount is equal to the increase in net fixed assets plus depreciation). Is this amount a cash outflow or inflow for the firm?

Question 5 options:

	The amount of additions to property, plant and equipment is a cash outflow for the firm. i.e. the firm's cash holding will decrease.
	The amount of additions to property, plant and equipment is a cash inflow for the firm. i.e. the firm's cash holding will increase.