Answered: 9) A gradient that starts at any time…

9) A gradient that starts at any time that is not the end of second year is called a shifted gradient Select one: True False

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

7) there are two policies to consider when payment period is less than compounding period. These are related to interperiod cash flows earn.

Select one:

True

False

8) In terms of an investment, a return of i = −100% means the entire amount is lost

Select one:

True

False

9) A gradient that starts at any time that is not the end of second year is called a shifted gradient

Select one:

True

False

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Consider the calculation of an external rate of return (ERR). The positive cash flows in the cash flow profile are moved forward to t = n using what value of i in the (F|P,i,n–t) factors? a. 0 b. The unknown value of ERR (i′) c. MARR d. IRR.
TRUE OR FALSE. IF FALSE CORRECT THE SENTENCE. A. True OR False: Deferred Annuities are annuities that have payments that don't begin until after the end of the second period. B. Uniform gradient cash flow is a cash flow that increases by a uniform amount each period, beginning at the end of period one.
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use the given formula-
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Answer it correctly please. I ll rate accordingly with multiple votes. Typed answer only and explain your steps.