Question
Which of the following is an input to all TVM problems? Group of answer choices: A. Tax rates B. Wages C. Discount rates D. Revenues
Which of the following is an input to all TVM problems?
Group of answer choices:
A. Tax rates
B. Wages
C. Discount rates
D. Revenues
E. Variable costs
2. Which of the following is NOT a type of problem that can be solved applying TMV concepts?
Group of answer choices:
A. Funding
B. Filing your taxes
C. Asset valuation
D. Wealth accumulation
E. Choosing among alternatives
3. Assume you are going to receive a payment of $1,000 in 5 years. You'd like to know what that cash flow would be worth today. To calculate the answer, you use the given interest rate to obtain an equivalent cash flow expressed in today's dollars.
This is an example of calculating a...
Group of answer choices:
A. Present Value
B. Future Value
C. Discounted Value
D. Annuity
E. Lump Sum
4. Assume you are going to receive a payment of $1,000 in 5 years. You'd like to know what that cash flow would be worth in 2 years. To calculate the answer, you use the given interest rate to obtain an equivalent cash flow expressed in year 2 dollars.
This is an example of calculating a...
Group of answer choices:
A. Present Value
B. Future Value
C. Discounted Value
D. Annuity
E. Lump Sum
5.Which of the following best describes the concept of cash-flow equivalence?
Group of answer choices:
A. An investor would be indifferent between receiving one cash-flow over the other.
B. The cash flows have the same value in dollars.
C. The cash flows happen during the same time period.
D. The cash flows are both positive.
E. The cash flows are both negative.
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