Which of the following is a true statement regarding the future worth of a single investment alternative? (a) It will be equal to both the present worth and the annual worth if the same discounting interest rate is used. (b) Choose to invest if the calculated amount is less than zero at the investment rate of return. (c) It will yield a recommendation consistent with the present worth and annual worth methods if the same discounting interest rate is used.(d) It cannot be used to evaluate single investment alternatives.
Which of the following is a true statement regarding the future worth of a single investment alternative? (a) It will be equal to both the present worth and the annual worth if the same discounting interest rate is used. (b) Choose to invest if the calculated amount is less than zero at the investment rate of return. (c) It will yield a recommendation consistent with the present worth and annual worth methods if the same discounting interest rate is used.(d) It cannot be used to evaluate single investment alternatives.
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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Which of the following is a true statement regarding the future worth of a single investment alternative? (a) It will be equal to both the present worth and the annual worth if the same discounting interest rate is used. (b) Choose to invest if the calculated amount is less than zero at the investment
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