You are explaining time value of money factors to your friend. Which factor would you explain as being larger?A. The future value of $1 for 12 periods at 6% is larger.B. The present value of $1 for 12 periods at 6% is larger.C. Neither one is larger because they are equal.D. There is not enough information given to answer this question.
You are explaining time value of money factors to your friend. Which factor would you explain as being larger?A. The future value of $1 for 12 periods at 6% is larger.B. The present value of $1 for 12 periods at 6% is larger.C. Neither one is larger because they are equal.D. There is not enough information given to answer this question.
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 4MC: You are explaining time value of money factors to your friend. Which factor would you explain as...
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You are explaining time value of money factors to your friend. Which factor would you explain as being larger?
A. The future value of $1 for 12 periods at 6% is larger.
B. The present value of $1 for 12 periods at 6% is larger.
C. Neither one is larger because they are equal.
D. There is not enough information given to answer this question.
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