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multiple time periods with 14. The process of calculating the Future Value of an investment over multiple time per periodic interest payments is called: a.
multiple time periods with 14. The process of calculating the Future Value of an investment over multiple time per periodic interest payments is called: a. Discounting c) Compounding b. Net Present Value d) Benefit/Cost Ratio oney received at some future 15. The process of calculating the Present Value of an amount of money received at some date is called: a. Discounting c) Compounding b. Net Present Value d) Benefit/Cost Ratio 16. Capital Budgeting decisions are different because they involve a. Large amounts of money c) Long-run commitments b. Non-reversible decisions d) All of the above (a, b & c) 17. The Present Value of an investment that would earn 5% per year for 8 years and be worth $12,000 at the end of the 8 years: a. $6,483.23 c) $8,167.00 b. $8,122.07 d) $9,402.31 18. The Present Value of an investment that would earn 8% per year for 5 years and be worth $12.000 at the end of the 5 years: a. $6,483.23 c) $8,167.00 b. $8,122.07 d) $9,402.31 19. If a potential investment has a positive Net Present Value (NPV > 0), then the decision should be to the investment opportunity. a. accept/take calculate B/C Ratio b. reject/decline d) don't know 20. If a potential investment has a Benefit/Cost Ratio less than one (B/C Ratio
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