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QUESTION 8 Which of the following statements is false: Time value of money is based on the premise that the value of money is not
QUESTION 8 Which of the following statements is false: Time value of money is based on the premise that the value of money is not only its face value but also the interest or prot that can be earned by investing it wisely. The discount rate is the weighted average cost of capital used as the IIY in present value calculations The capitalization method of valuation utilizes the concept of a perpetuity Investment analysis is the process of estimating an asset's future value, which can then be compared with its cost to acquire or develop. QUESTION 9 Which of the following statements is true: The IIY function on a business calculator stands for annuity payment. An annuity due is a fixed amount of money received at the end of each compounding period for a set time. For the borrower, a monthly compounding period is more favorable for a loan. Earnings in sweep accounts are usually based on the federal funds traded rate, and the interest earned is credited daily
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