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can you answer these questions Hoymentida933142283850270103229515BN 9781137911 CENGAGE MINDTAP Ch 05: Assignment - Time Value of Money Finding a present value is the reverse of
can you answer these questions
Hoymentida933142283850270103229515BN 9781137911 CENGAGE MINDTAP Ch 05: Assignment - Time Value of Money Finding a present value is the reverse of finding a tuture value a Search this co Which of the following is true about finding the present value of cash flows? Finding the present value of cash flows tells you how much you need to invest today so that it grows to a given future amount at a specified rate of return Finding the present value of cash flows tells you what a cash flow will be worth in future years at a specified rate of return. Which of the following investments that pay will $18,000 in 4 years will have a lower price today The security that carns an interest rate of 6.00% The security that earns an interest rate of 4.00%. Eric wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cost interest rate) of holding the security is 4.00%. Assuming that both investments have equal risk and Eric's investment time horizon is flexible, which of the following investment options wit exhibit the lower price? An investment that matures in four years An investment that matures in five years Which of the following is true about present value calculations? van SWS US TO WW WWWW Which of the following investments that pay will $18,000 in 4 years will have a lower price today The security that earns an interest rate of 6.00%. The security that earns an interest rate of 4.00% Eric wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cont (Interest rate) of holding the security is 4.00%. Assuming that both investments have equal risk and Eric's investment time horizon is flexible, which of the following investment cations will exhibit the lower price? An investment that matures in four years An investment that matures in five years Which of the following is true about present value calculations? Other things remaining equal, the present value of a future cash flow increases if the discount rate increases, Other things remaining equal, the present value of a future cash flow decreases if the discount rate increases. Grade It Now Save & Continue Continue without sving 6061 55F Clear 9/25 ORI Step by Step Solution
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