A certificate of deposit is a savings vehicle that gives the purchaser the right to receive interest. True False WACC is the blended cost of debt and equity used to finance a deal. True False A single sum investment is also known as a lump sum investment. True False A regular annuity is a fixed amount of money received at the beginning of each compounding period. True False A perpetuity is an annuity that yields the same cash flow forever. True False Multiple Choice Questions The hurdle rate is: the market value of a cash-flowing asset. the interest utilized in lump sum calculations. the interest rate of a loan. an investor's ROI target. What is the approximate present value of $100 to be received at the end of 5 years assuming a 20% discount rate? $10 $30 $40 $50 What is the approximate future value of $200 invested at an annual interest rate of 5% for 20 years? $500 $510 $530 $540 What is the approximate future value of $1.000 to be received each year for 15 years assuming an interest rate of I0%? $30.562 $32, 762 $34, 562 $31, 772 The riskier the investment: the higher the asset's present value. the higher the asset's market value. the lower the asset's present value