Homework Help is Here – Start Your Trial Now!
Business
Finance
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

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

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
See similar textbooks
icon
Related questions
Question
help me choose the correct answer
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 В. Р30, 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 opportunity 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% per year for two years? A. P24,996.00 B. P25,088.00 C. P23, 864.00 D. P26,740.00 It 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 return C.net present value payback method 17. It is the process that a business use in evaluating and selecting major projects or В. D. none of the above investment. A. capital budgeting 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. C. planning B. marketing D. А. C. subdivision projects B. mutually exclusive projects D. А. 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 present value of cash outflows over a period. A. internal rate of return C. net present value B. payback method D. none of the above
Transcribed Image Text: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 В. Р30, 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 opportunity 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% per year for two years? A. P24,996.00 B. P25,088.00 C. P23, 864.00 D. P26,740.00 It 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 return C.net present value payback method 17. It is the process that a business use in evaluating and selecting major projects or В. D. none of the above investment. A. capital budgeting 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. C. planning B. marketing D. А. C. subdivision projects B. mutually exclusive projects D. А. 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 present value of cash outflows over a period. A. internal rate of return C. net present value B. payback method D. 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 the future value of your deposit? A. PHP 2,575 PHP 2,625 В. C. PHP 2,562,50 . D. PHP 2,550 2. You need to save up PHP 3,500 in 1 year. How much should you save now if the bank offers a rate of 5%? Find the present value. A. PHP 3,414.63 В. РНР 3,333.33 C. PHP 3,397.75 D. PHP 3,465.35 3. The name associated with the amount removed from a future value when discounting it to the present value is А. Interest В. Future Value C. С. Annuity Cash D. 4. If you know the present value, the future value, and the length of time before the future amount will occur you can compute the by using a present value calculation. A. Annuity В. Interest rate C. Future amount of money D. Time value 5. It refers to the value right now of some amount of money in the future. A. Future value В. Present value C. Simple interest D. Compound interest 6. You need P25,000.00 to buy a laptop 2 years from now. How much must you invest now if the interest rate is at 6% per annum? A. P22,345.00 B. P22,225.00 C. P22,249.91 D. P22,254.75 7. If I promised to give you P500.00 next year, what is the Present Value (at 10% interest)? A. P455.00 В. Р454,55 C. P456.10 D. P450.00 8. What is P700.00 next year worth now, at an interest rate of 10%? A. P636.37 В. Р637.00 C. P636.00 D. P635.00 9. What is P10,000.00 in 10 years time. What is its Present Value at an interest rate of 6%? A. P5,584.10 B. P5,585.00 C. P5,594.09 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 D. Interest rate 11 It anewers the question: How much muet be invosted today to produce a certain amount in
Transcribed Image Text: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 the future value of your deposit? A. PHP 2,575 PHP 2,625 В. C. PHP 2,562,50 . D. PHP 2,550 2. You need to save up PHP 3,500 in 1 year. How much should you save now if the bank offers a rate of 5%? Find the present value. A. PHP 3,414.63 В. РНР 3,333.33 C. PHP 3,397.75 D. PHP 3,465.35 3. The name associated with the amount removed from a future value when discounting it to the present value is А. Interest В. Future Value C. С. Annuity Cash D. 4. If you know the present value, the future value, and the length of time before the future amount will occur you can compute the by using a present value calculation. A. Annuity В. Interest rate C. Future amount of money D. Time value 5. It refers to the value right now of some amount of money in the future. A. Future value В. Present value C. Simple interest D. Compound interest 6. You need P25,000.00 to buy a laptop 2 years from now. How much must you invest now if the interest rate is at 6% per annum? A. P22,345.00 B. P22,225.00 C. P22,249.91 D. P22,254.75 7. If I promised to give you P500.00 next year, what is the Present Value (at 10% interest)? A. P455.00 В. Р454,55 C. P456.10 D. P450.00 8. What is P700.00 next year worth now, at an interest rate of 10%? A. P636.37 В. Р637.00 C. P636.00 D. P635.00 9. What is P10,000.00 in 10 years time. What is its Present Value at an interest rate of 6%? A. P5,584.10 B. P5,585.00 C. P5,594.09 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 D. Interest rate 11 It anewers the question: How much muet be invosted today to produce a certain amount in
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Payments(ras), Appeals and Secondary Claims
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
SEE MORE TEXTBOOKS