True or False 1. Selecting the best alternative always depends on the economy under study, rather than the total costs.2. If a certain present value P is amortized into 10 equal payments, then the future worth F will always be greater than 10 times the present worth for all values of i.3. A zero profit implies that this is a breakeven point, and the amount of demand equals the amount of supply.4. Inflation is the real reason why our country cannot just print more bills or produce money to pay our debts.5. A deferred annuity until n period of i interest, and A equal payments, can be compensated by paying A times[F/A, i%, n + 1] on the n +1 period.6. If an amortization schedule with A equal payments is done from 1 to n periods by paying at the end of every period, then at any point j between 1 to n, the value of the money left upon withdrawing the lump sum from 1 to j is A times [F/A, i%, n − j].7. The capitalized cost is generally the sum of first cost and all operating costs accumulated in one year. 8. For any economy study, it is always necessary to determine the profit to evaluate the better/best alternative.9. If simple interest is evaluated, then the interest obtained will always be directly proportional to the number of years assuming that a constant interest rate is used throughout these years.10. The future worth of a perpetuity from one (1) to n years is undefined because as n approaches infinity, the value becomes 0.11. Perpetuity is derived from the fact that the number of compounding periods approaches to infinity while the nominal interest rate approaches to 0. This then lumps the expression into e.12. The breakeven point always maximizes the profit.
True or False
1. Selecting the best alternative always depends on the economy under study, rather than the total costs.
2. If a certain present value P is amortized into 10 equal payments, then the future worth F will always be greater than 10 times the present worth for all values of i.
3. A zero profit implies that this is a breakeven point, and the amount of demand equals the amount of supply.
4. Inflation is the real reason why our country cannot just print more bills or produce money to pay our debts.
5. A deferred annuity until n period of i interest, and A equal payments, can be compensated by paying A times
[F/A, i%, n + 1] on the n +1 period.
6. If an amortization schedule with A equal payments is done from 1 to n periods by paying at the end of every period, then at any point j between 1 to n, the value of the money left upon withdrawing the lump sum from 1 to j is A times [F/A, i%, n − j].
7. The capitalized cost is generally the sum of first cost and all operating costs accumulated in one year.
8. For any economy study, it is always necessary to determine the profit to evaluate the better/best alternative.
9. If simple interest is evaluated, then the interest obtained will always be directly proportional to the number of years assuming that a constant interest rate is used throughout these years.
10. The future worth of a perpetuity from one (1) to n years is undefined because as n approaches infinity, the value becomes 0.
11. Perpetuity is derived from the fact that the number of compounding periods approaches to infinity while the nominal interest rate approaches to 0. This then lumps the expression into e.
12. The breakeven point always maximizes the profit.
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