Which of the following statements is false?a. The present value of $100 two years from today at a 10 percent interest rate is approximately $83.b. A firm will not undertake an investment if the present value of the future income resulting from the investment is greater than the cost of the investment.c. Firms calculate present values when they make investment decisions because investment decisions yield benefits in the future and firms want some idea ofthe value of these benefits.d. The present value of $100 a year from today at a 10 percent interest rate is approximately $91.

The present value is the current value of the future cash flows discounted at an interest rate. It…

Which of the following statements is false? ○a. The present value of $100 two years from today at a 10 percent interest rate is approximately $83. ○ b. A firm will not undertake an investment if the present value of the future income resulting from the investment is greater than the cost of the investment. O c. Firms calculate present values when they make investment decisions because investment decisions yield benefits in the future and firms want some idea of the value of these benefits. Od. The present value of $100 a year from today at a 10 percent interest rate is approximately $91.

Which of the following statements is false? ○a. The present value of $100 two years from today at a 10 percent interest rate is approximately $83. ○ b. A firm will not undertake an investment if the present value of the future income resulting from the investment is greater than the cost of the investment. O c. Firms calculate present values when they make investment decisions because investment decisions yield benefits in the future and firms want some idea of the value of these benefits. Od. The present value of $100 a year from today at a 10 percent interest rate is approximately $91.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Which of the following statements is false?
a. The present value of $100 two years from today at a 10 percent interest rate is approximately $83.
b. A firm will not undertake an investment if the present value of the future income resulting from the investment is greater than the cost of the investment.
c. Firms calculate present values when they make investment decisions because investment decisions yield benefits in the future and firms want some idea of
the value of these benefits.
d. The present value of $100 a year from today at a 10 percent interest rate is approximately $91.

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