Question
5-23. At any interest rate above 0 percent, the future value of an investment will always be less than the original amount invested. greater than
5-23. At any interest rate above 0 percent, the future value of an investment will always be
less than the original amount invested. greater than the original amount invested. equal to the original amount invested.
5-24. A stream of 60 monthly payments of $1,000 each is an example of a(n) _________. 5-25. If the net present value of the cash flows from an investment is greater than zero and you base your decision solely on financial considerations, you should _________ the investment. (Circle the correct answer.)
accept reject do nothing (not enough information) about
5-26. If compounding changes from quarterly to weekly for a $100 investment earning 8 percent per annum, the future value at the end of 5 years will (select from the answers below)
increase. decrease. stay the same. cannot tell from the information given
5-27. The internal rate of return is the discount rate that sets the _________ value of the _________ equal to the _________ value of the _________.
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