HIGHLIGHT ANSWERS

39. The "gold standard" of investment criteria refers to: A. internal rate of return. B. net present value. C. profitability index. D. payback period. 40. What is the minimum cash flow that could following project "acceptable"? Initial cost $100,000; cash flows at end of years 1 and 2 $35,000, opportunity cost of capital 10%. be received at the end of year 3 to make the A. $29,494 B. $30,000 C. $52,250 D. $39,256 today, what effective annual interest rate is being offered? y. whorower romisesto pay you $1,900 9 years from now in return for a loan of $1,000 A. 9.00% B. 10.00% C. 7.39% D. 5.26% 42. The concept of compound interest refers to: A. earning interest on the original investment. B. payment of interest on previously earned interest. C. determining the APR of the investment. D. investing for a multiyear period of time. 43. What is the net effoat