Question 1 1 pts As long as interest rates are greater than zero, the present value of a future cash flow will be: Smaller than the future value Larger than the future value Equal to the future value Question 2 1 pts Financial security A offers a single expected cash flow of $100 one year from now; Financial Security B offers a single expected cash flow of $100 two years from now. If the securities have similar risk, which security should have the higher price today? Security A Security B The prices should be the same Question 3 1 pts Two capital investment projects require the same initial investment and have the same expected future free cash flows. The one with higher systematic risk should have Lower NPV Higher NPV The projects should have the same NPV Question 4 1 pts For a given monthly periodic interest rate: The APR will be higher than the effective annual rate The effective annual rate will be higher than the APR The APR will be equal to the effective annual rate