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the most correct answer only Q2. (5 points) Underline the most correct sentence for the following questions: 1. The fact that one should not add
the most correct answer only Q2. (5 points) Underline the most correct sentence for the following questions: 1. The fact that one should not add or subtract money unless it occurs at the same point in time is an illustration of what concept? a. Time value of money b. Marginal return c. Economy of scale d. Pareto principle 2. The "discounting" in a discounted cash flow approach requires the use of which of the following? a. An interest rate b. The economic value added c. The gross margin d. The incremental cost 3. Risks and returns are generally correlated. a. inversely b. negatively c. not d. positively 4. Time value of money calculations may not be required in an economic evaluation for all of the following reasons except a. annual cash flows are proportional to the first year cash flow. b. inflation is absent. c. no investment of capital is required. d. there are no differences in the cash flows of the alternatives after the first year. 5. If a student's time value of money rate is 30 percent, then the student would be indifferent between $100 today and how much in 1 year? a $30 b. S100 c. $103 d. S130
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