T.2020 13) 13) Present values can always be calculated by dividing the cash flow by a discount factor. A) True B) False 14 4) A car's price is currently $20,000 and is expected to rise by 4% a year. If the interest rate is 6%, how much do you need to put aside today to buy the car one year from now? A) $19,623 B) $19,231 C) $4,080.08 D) $18,182 You should never compare cash flows occurring at different times without first discounting them to a common date. A) True B) False low much interest is earned in just the third year on a $1,000 deposit that earns 7% terest compounded annually? A) S105.62 B) $80.14 C) $70.00 D) $140.00