help me choose the correct answer 11. It answers the question: How much must be invested today to produce a certain amount inthe futureA. Present valueB. Future valueC. AnnuityD. Mixed stream12.What is the future value of P25,000 which grows at an annual interest rate of 11%per year for two years?A. P30, 802.50В. Р30, 802.00C. P29,459.00D. P27,963.7513What is the present value of an offer of P15,000 two years from now if theopportunity cost of capital (discount rate) is 12% per year compounded annually?A. P11,955.00B. P11,958.00C. P11,362.45D. P12,613.0014.What is the present value of an offer of P14,000 a years from now if the opportunitycost of capital (discount rate) is 11% per year nominal annual rate compounded monthly?A. P12,548.18B. P13,312.00C. P24,314.00D. P31,943.0015.What is the future value of P20,000 that grows at an annual interest rate of 12% peryear for two years?A. P24,996.00B. P25,088.00C. P23, 864.00D. P26,740.00It is a method that evaluates a project by measuring the time (usually expressed in years)it will take to recover the initial investments.16.А.internal rate of returnC.net present valuepayback method17. It is the process that a business use in evaluating and selecting major projects orВ.D. none of the aboveinvestment.A. capital budgetingexpenditures18. These are competing projects that the approval of one eliminates the others.independent projectscombined projects19. These are the net cash inflows one expects to get when the business or project hasalready started.C. planning B.marketingD.А.C. subdivision projects B. mutually exclusive projectsD.А.cash returnsC. cash receipts B.cash refundD. cashdisbursement20. This refers to the difference between the present value of cash inflows and the net presentvalue of cash outflows over a period.A.internal rate of returnC. net present value B.payback methodD.none of the above Multiple Choice: Choose the letter of the right answer.1.You deposited PHP 2,500 in a bank with an interest rate of 3% for 1 year. What is thefuture value of your deposit?A.PHP 2,575PHP 2,625В.C. PHP 2,562,50.D.PHP 2,5502. You need to save up PHP 3,500 in 1 year. How much should you save now if the bank offersa rate of 5%? Find the present value.A. PHP 3,414.63В. РНР 3,333.33C. PHP 3,397.75D. PHP 3,465.353. The name associated with the amount removed from a future value when discounting it tothe present value isА.InterestВ.Future ValueC.С.AnnuityCashD.4. If you know the present value, the future value, and the length of time before the futureamount will occur you can compute theby using a presentvalue calculation.A.AnnuityВ.Interest rateC.Future amount of moneyD.Time value5. It refers to the value right now of some amount of money in the future.A.Future valueВ.Present valueC.Simple interestD.Compound interest6. You need P25,000.00 to buy a laptop 2 years from now. How much must you invest now ifthe interest rate is at 6% per annum?A. P22,345.00B. P22,225.00C. P22,249.91D. P22,254.757. If I promised to give you P500.00 next year, what is the Present Value (at 10% interest)?A. P455.00В. Р454,55C. P456.10D. P450.008. What is P700.00 next year worth now, at an interest rate of 10%?A. P636.37В. Р637.00C. P636.00D. P635.009. What is P10,000.00 in 10 years time. What is its Present Value at an interest rate of 6%?A. P5,584.10B. P5,585.00C. P5,594.09D. P5,586.0010.Money that you have right now will be worth more over time, refers toA. Future valueB. Present valueC. Time value of moneyD. Interest rate11 It anewers the question: How much muet be invosted today to produce a certain amount in

Since you have posted multiple questions at once we will solve the first one for you. To get the…

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? A. P30, 802.50 B. P30, 802.00 C. P29,459.00 D. P27,963.75 13. 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? A. P11,955.00 B. P11,958.00 C. P11,362.45 D. P12,613.00 14. What is the present value of an offer of P14,000 a years from now if the opportunit cost of capital (discount rate) is 11% per year nominal annual rate compounded monthly? A. P12,548.18 B. P13,312.00 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% p year for two years? A. P24,996.00 B. P25,088.00 C. P23, 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. A. internal rate of return C.net present value В. payback method D. none of the above 17. It is the process that a business use in evaluating and selecting major projects or investment. A. capital budgeting C. planning B. marketing D. expenditures 18. These are competing projects that the approval of one eliminates the others. independent projects combined projects 19. These are the net cash inflows one expects to get when the business or project has already started. A. C. subdivision projects B. mutually exclusive projects D. A. cash returns C. cash receipts B. cash refund D. cash disbursement 20. This refers to the difference between the present value of cash inflows and the net presen value of cash outflows over a period. A. internal rate of return C. net present value B. payback method D. none of the above

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