Question
Based on the following information calculate the present value of the amount received at the end of year 1. time (years) discount rate cash flows
Based on the following information calculate the present value of the amount received at the end of year 1.
| time (years) | discount rate | cash flows |
| 0 | 6% | |
| 1 | 120 |
The present value is greater than $114. True OR False
Based on the following information calculate the present value of the amount received at the end of year 1.
| time (years) | discount rate | cash flows |
| 0 | 4% | |
| 1 | 110 |
The present value is greater than $106. True OR False
Based on the following information calculate the present value of the amount received at the end of year 2.
| time (years) | discount rate | cash flows |
| 0 | 4% | |
| 1 | ||
| 2 | 110 |
The present value is less than $101. True OR False
Based on the following information calculate the present value of the amount received at the end of year 2.
| time (years) | discount rate | cash flows |
| 0 | 4% | |
| 1 | ||
| 2 | 120 |
The present value is less than $111. True OR False
Based on the following information calculate the value at time 1 of the investment made at time zero.
| time (years) | discount rate | investment |
| 0 | 4% | 100 |
| 1 |
|
This future value is less than 105. True OR False
Based on the following information calculate the value at time 1 of the investment made at time zero.
| time (years) | discount rate | investment |
| 0 | 6% | 100 |
| 1 |
|
This future value is between 103 and 105. True OR False
Based on the following information calculate the value at time 1 of the investment made at time zero.
| time (years) | discount rate | investment |
| 0 | 8% | 100 |
| 1 |
|
This future value is equal to 108. True OR False
Based on the following information calculate the value at time 2 of the investment made at time zero.
| time (years) | discount rate | investment |
| 0 | 4% | 100 |
| 1 | ||
| 2 |
|
This future value is greater than to 109. True OR False
Based on the following information calculate the value at time 2 of the investment made at time zero.
| time (years) | discount rate | investment |
| 0 | 6% | 100 |
| 1 | ||
| 2 |
|
This future value is equal to 113. True OR False
Based on the following information calculate the value at time 2 of the investment made at time zero.
| time (years) | discount rate | investment |
| 0 | 8% | 100 |
| 1 | ||
| 2 |
|
This future value is equal to 108. True OR False
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Auditors Guide To IT Auditing
Authors: Richard E. Cascarino
2nd Edition
1118147618, 978-1118147610
