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7. If the interest rate is 6%, which of these cash flows would you prefer to A single payment of $500 in year 3. A.

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7. If the interest rate is 6%, which of these cash flows would you prefer to A single payment of $500 in year 3. A. 8. Payments of Ss a ear for 15 years starting one year tromo C.A perpetuity of $30 a year starting one year from now from now D. A payment of $400 today 8. Which one of these is a capital budgeting decision? Deciding to issue debt in the form of long-term bonds Deciding whether or not the firm should go public and issue stock Deciding whether or not the firm should increase boost its Research & B. C. Development expenditures D. None of the above 9, would you prefer a savings account that paid 8% interest compounded quarterly, 7.9% compounded monthly, 7.9% compounded weekly, or 8.1% with annual compounding? (There are 52 weeks in a year) 8% compounded quarterly 7.9% compounded monthly 7.9% compounded weekly 8.1% compounded annually A. B. C. D

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