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- Which of the following is not needed to compute the present value of an investment?a. The length of time between the investment and future receiptb. The interest ratec. The rate of inflationd. The amount of the receipTHow can we determine the borrowing rate of return?Which of the following methods consider the time value of money? A. payback and accounting rate of return B. payback and internal rate of return C. internal rate of return and accounting rate of return D. internal rate of return and net present value
- Establish a compensatory equilibrium. In financial statements, how are compensating balances reported?How is the impact of uncertainty reflected in a discounted cash flow (DCF) analysis?a) Debt/equity mixb) Discount ratec) Income tax rated) Interest coverage ratioWhich method does not consider the time value of money? Choose the correct. A. Net present value B. Internal Rate of Return C. Average rate of return D. Profitability Index
- What is the difference between the stated interest rate and the market interest rate?Repo Instruments, Term Money and Call Money are part of a. Forex Market b. Money market c. Capital Market d. Commodity MarketDistinguish between the initial rate of interest and the expected yield on an ARM. What is the general relationship between the two? How do they generally reflect ARM terms?
- What are: the payback method, the Accounting Rate of Return, and Discounted Cash Flow Model (Net Present Value and Internal Rate of Return)1. Credit spreads least likely depend on which of the following: A. Market supply B. Market demand C. Financial markets D. InflationWhat interest rates should be used in calculating the amount of interest that should be capitalized and how should they be calculated? What method should be used to calculate the amount of interest to be capitalized?