2. QUESTION 1 Which of the following is the largest if the interest rate is 12 percent annually? 1. $100 compounded for three years 2. $100 annuity compounded for three years 3. the present value of $100 received after three years o a. 3 b, answer cannot be detemined O c. 2 d, 1 2. QUESTION 2 When an asset is depreciated, a, its cost is allocated over a period of time b. the cash flow from an investment is reduced o c. the cost of the asset is increased to reflect appreciation in its value o d. the firm's earnings and taxes are increased 2. QUESTION 3 efficient market, security prices a. poorly value a firm's future prospects In an b, indicate that the firm is overvalued adjust slowly to new information d. adjust rapidly to new information C OOOO