Which of the following statements is INCORRECT?
A)In general,money today is worth more than money in one year.
B)We define the risk-free interest rate,rf,for a given period as the interest rate at which money can be borrowed or lent without risk over that period.
C)We refer to (1 - rf)as the interest rate factor for risk-free cash flows.
D)For most financial decisions,costs and benefits occur at different points in time.

Question

Quizplus · Accepted Answer

The interest rate factor for risk-free cash flows is (1 + rf), not (1 - rf).

Which of the Following Statements Is INCORRECT