ACC 281 quiz 5-92

#7 For context NPV is net present value, IRR is internal rate of return, and ARR is accounting rate of return 3 c Known Amt. ? ? Known Amt. ? Known Amounts What is this chart? What is this chart? What is this chart? What is this chart? ? Known Amounts Describe Compound Interest. What do we mean when we say "discounting"? What are the reasons for using the PVA table? How do NPV and IRR differ from Payback Period and ARR?

The discount rate is the combination of what two types of discounting?   a. exponential and linear   b. social and monetary   c. present and future   d. growth and time

Interest can be defined as the price of credit and also as a rate of return Question 21 options:True False

Internal Rate of Return is the discount rate that sets NPV to 0. True or false?

__________ is the interest rate that makes NPV equal to zero when it is used as the discount rate.

The interest method of amortizing discount provides for   a. Increasing amortization and decreasing interest income b. Decreasing amortization and decreasing interest income c. Decreasing amortization and increasing interest income d. Increasing amortization and increasing interest income

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which one is correct please suggest? QUESTION 34 The effective rate of interest will always be ____ the nominal rate.   a. greater than   b. less than   c. equal to   d. equal to or greater than

A market rate of discount for a single payment to be made in the future is a forward rate.   Select one: True False

The _______ models the relationship between inflation rate, nominal return, and real return. Multiple Choice   Interest Rate Parity.   Put-Call Parity.   Fisher Effect.   Law of One Price.   Purchasing Power Parity.

What is WACC and why would that be used as the discount rate?