10. Money that you have right now will be worth more over time, refers to A. Future value B. Present value C. Time value of money D. Interest rate
10. Money that you have right now will be worth more over time, refers to A. Future value B. Present value C. Time value of money D. Interest rate
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Continuation
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A, P
100%
Normal text
Arial
11
2
4
1
C. PJ,J944.09
6
7
D. P5,586.00
10.
Money that you have right now will be worth more over time, refers to
A. Future value
B. Present value
C. Time value of money
3.
D. Interest rate
11. It answers the question: How much must be invested today to produce a certain amount in
the future
A. Present value
B. Future value
C. Annuity
D. Mixed stream
12.
What is the future value of P25,000 which grows at an annual interest rate of 11%
per year for two years?|
А. Р30, 802.50
В. Р30, 802.00
C. P29,459.00
D. P27,963.75
What is the present value of an offer of P15,000 two years from now if the
opportunity cost of capital (discount rate) is 12% per year compounded annually?
13.
A. P11,955.00
B. P11,958.00
C. P11,362.45
D. P12,613.0O
14.
What is the present value of an offer of P14,000 a years from now if the opportunity
cost of capital (discount rate) is 11% per year nominal annual rate compounded monthly?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5bee7a96-6c01-43d4-8038-ee6b8f9baebf%2F05f4c5be-2a3e-4eff-a9cb-0328a644900a%2Fjrh2s2t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Search the menus (Alt+/)
A, P
100%
Normal text
Arial
11
2
4
1
C. PJ,J944.09
6
7
D. P5,586.00
10.
Money that you have right now will be worth more over time, refers to
A. Future value
B. Present value
C. Time value of money
3.
D. Interest rate
11. It answers the question: How much must be invested today to produce a certain amount in
the future
A. Present value
B. Future value
C. Annuity
D. Mixed stream
12.
What is the future value of P25,000 which grows at an annual interest rate of 11%
per year for two years?|
А. Р30, 802.50
В. Р30, 802.00
C. P29,459.00
D. P27,963.75
What is the present value of an offer of P15,000 two years from now if the
opportunity cost of capital (discount rate) is 12% per year compounded annually?
13.
A. P11,955.00
B. P11,958.00
C. P11,362.45
D. P12,613.0O
14.
What is the present value of an offer of P14,000 a years from now if the opportunity
cost of capital (discount rate) is 11% per year nominal annual rate compounded monthly?
![Search the menus (Alt+/)
100%
Normal text
Arial
11
1
2
3
4
7
14.
What is the present value of an offer of P14,000 a years from now if the opportunity
cost of capital (discount rate) is 11% per year nominal annual rate compounded monthly?
A. P12,548.18
В. Р13,312.00
C. P24,314.00
D. P31,943.00
15.
What is the future value of P20,000 that grows at an annual interest rate of 12% per
year for two years?
A. P24,996.00
B. P25,088.00
С. Р23, 864.00
D. P26,740.00
16.
It is a method that evaluates a project by measuring the time (usually expressed in years)
it will take to recover the initial investments.
А.
internal rate of return
C.net present value
В.
payback method
D. none of the above
17. It is the process that a business uses in evaluating and selecting major projects or
investment.
C. planning B.
marketing
A. capital budgeting
expenditures
18. These are competing projects that the approval of one eliminates the others.
independent projects
D. combined projects
D.
А.
C. subdivision projects B. mutually exclusive projects
19. These are the net cash inflows one expects to get when the business or project has
already started.
А.
cash returns
C. cash receipts B.
cash refund
D. cash
disbursement
Suggest edits](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5bee7a96-6c01-43d4-8038-ee6b8f9baebf%2F05f4c5be-2a3e-4eff-a9cb-0328a644900a%2F86haa3r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Search the menus (Alt+/)
100%
Normal text
Arial
11
1
2
3
4
7
14.
What is the present value of an offer of P14,000 a years from now if the opportunity
cost of capital (discount rate) is 11% per year nominal annual rate compounded monthly?
A. P12,548.18
В. Р13,312.00
C. P24,314.00
D. P31,943.00
15.
What is the future value of P20,000 that grows at an annual interest rate of 12% per
year for two years?
A. P24,996.00
B. P25,088.00
С. Р23, 864.00
D. P26,740.00
16.
It is a method that evaluates a project by measuring the time (usually expressed in years)
it will take to recover the initial investments.
А.
internal rate of return
C.net present value
В.
payback method
D. none of the above
17. It is the process that a business uses in evaluating and selecting major projects or
investment.
C. planning B.
marketing
A. capital budgeting
expenditures
18. These are competing projects that the approval of one eliminates the others.
independent projects
D. combined projects
D.
А.
C. subdivision projects B. mutually exclusive projects
19. These are the net cash inflows one expects to get when the business or project has
already started.
А.
cash returns
C. cash receipts B.
cash refund
D. cash
disbursement
Suggest edits
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