The current market interest rate is $8\%.$ The present value of $300$ to be received at the end of the year and

increasing by $5\%$ per annum thereafter forever, is closest to$?$

Select one:

a$.9,500$

b$.8,800$

c$.10,000$

d$.10,500$

Which of the following statements is false?

Select one:

a$.$ Finding the present value and compounding are the same.

b$.$ The equivalent value of two cash flows at two different points in time is sometimes referred to as the time

value of money.

c$.$ A dollar today and a dollar in one year are not equivalent.

d$.$ If you want to compare or combine cash flows that occur at different points in time, you first need to

convert the cash flows into the same units or move them to the same point in time.